I've had a chance now to check 4wd operation on a lift and practical tests in a snowy parking lot.
Here's the results; it seems right to me:
2Hi, ADD Switch On - Front wheels spin independently, RWD only
4Hi, ADD Switch Off - Front wheels spin independently, RWD only
4Hi, ADD Switch On - All wheels spin together, front driveshaft engaged
4Lo, ADD Switch Off - Front wheels independent, no steering difficulty or wheel hop
4Lo, ADD Switch On - Both driveshafts engaged, harder to steer, bucks on tight turns
Hopefully this helps anyone else deciding whether or not this will work for them.