Now that I think about it, I am curious too... the motor doesn't disconnect the links, I wonder what it does disconnect... Here is a picture of it:
http://www.4wd.com/productdetails.aspx?partID=15832
The linkage is still hooked up, but the bar is released from tension, so you get the full articulation, limited by the reach of the linkage. I wonder if it would flex more completely disconnected, but I think it does offer some stability control with the design. Nice set up.
That things got more electronics on it than most people know. The anti-skid Electronic Stability Program (ESP) is quite impressive. It will apply braking to a wheel or release it to provide the optimum traction, and can be disabled with the push of a button. Neat electronic throttle, with a different ratio when you're in 4 low. All good stuff. I recently drove an automatic 08" with 5k that was a steal, but didn't like the on-road power. I'm sure it's fine off-road, or with the 6 speed.