Bob, I may be wrong (someone please correct me if so), but with the hubs unlocked, the trans is still going to spin the transfer case which in turn will still be powering the front diff when the TOD kicks in, which will still be powering everything all the way to the CV joints, but at the end of the CVs, the hubs will be there and unlocked so there will be no tire weight/friction on the CVs, they will just spin. I think it's a little strange myself, but I understand the principle. Most of the time when CVs break, it is because the vehicle is lifted, putting the CVs at a sharper angle, which in turns creates way more stress on the joint when wheeling. That is why so many folks have had issues with a front locker and our IFS. Too much stress is being put out to the front IFS, and both sides at the same time, which causes CVs to fail more when one tire is hung up and the other isn't. With the hubs unlocked, you are minimizing the stress (i.e. weight and pressure) on the CVs, and thus, making them last longer, hopefully.
I think this would be a benefit to someone with a front locker, because if you were wheeling, and got one of your front tires stuck pretty good, you should be able to, in theory, unlock the stuck side, so there is no torque going to that side (via the locker) at the same time there is torque going to the other side. Which, in theory, should eliminate the potential to snap the stuck side. Does that make sense?
And I suppose a negligible MPG increase may also happen.
Bart