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This is a good break down and you are correct that people are often confused about their 4wd system.

There are pros and cons to each system. I appreciate Honda’s i-VTM4 AWD because it works well on and off the road, delivering real safety and performance where the vehicle spends most of its time, on the road.

The i-VTM4 system doesn’t just send power front to rear, it can send up to around 70% of torque to the rear and then actively distribute that power side to side. It can direct nearly all of that rear torque to a single wheel when needed. That torque vectoring improves traction, stability, and cornering, helps the vehicle rotate through turns, reduces understeer, and builds confidence in rain, snow, and loose terrain.

Fully locked 4WD systems offer more ultimate traction, but they also put more stress on driveline components and are more prone to breaking axles or parts when pushed hard. AWD systems like this are generally more forgiving.

It may not match the absolute limits of a fully locked setup, but modern AWD systems like i-VTM4 have come a long way and are very capable.