My 2 cents...
This statement isn't true. The JDM ToD is the same one as was used in other Isuzu products in the US that had optional ToD such as the Trooper (it might however be interchangeable between the 3.2 and 3.5L engines, though). The VX ToD is unique, and cannot be shifted into 2wd. The US Trooper with the 3-position ToD (JDM VX ToD) also had auto-locking hubs which would engage once you put it into 4WD and started rolling. That's how it was able to go true 2WD - disconnect the front axle at the transfer case and the front hubs would automatically unlock and disconnect from the front axle drivetrain components (by driving backwards IIRC?) so it did not uselessly spin them via either the wheels or the t-case. If mbeach had been successful with the ToD intercept, we could have used such a device to completely disconnect the front of the drivetrain and used manual-locking hubs to truly get 2WD-Hi operation.
(Bart, you have reason to be unclear about the manual hubs mod - even if people do see some benefits by doing it, it does not provide a true 2WD mode because it will still be spinning the unused drivetrain components which saps power and fuel economy).
Personally, I wouldn't do it to my VX... there's so little upside to this mod on an unlifted VX and way too much downside (i.e., pulling unknown-quality parts off a junked car and putting them on your VX). I've had my fill of "improvements" that screw up something in the process... I don't need any more of those headaches.