The VX comes stock with "LOCKED ALL THE TIME HUBS"...not Auto hubs, but "LOCKED ALL THE TIME". So, disengaging the hub doesn't make it spin all the time... it just allows the TOD not to send power to the front axle and unlock the hub so it doesn't spin all the time.

You want the TOD on/off switch so your TOD clutch solenoid doesn't burn out if you are in a situation that requires the sensors to attempt to engage the TOD repetitiously. Trust me a T-case is not fun to replace, time consuming and very tedious.