It doesn't work like that. especially in the older 4eats found in GL's,GL-10s, XTs and XT-6.
First of all you only get the increased transfer in 1st on these old ones. BUT there is no 1st on the select lever. You must push in the 1 hold button when the shifter is in 2nd position. Then you get 1st gear. so you'd be limited to about 20-30mph tops.
Second of all, The increase from being in 1st is not nearly as much as when you lock it with the switch. It just isn't. If you haven't done it you don't know.
Third and maybe most importantly, The older computers just aren't as good as the new ones. It takes way too long once the front slips to kick in and send power. Even then it is not smooth and isn't even enough power to the back end when it's really deep snow. I have a 93 Legacy, with 80,000 more miles than my GL, and it transfers beautifully. It just bites and goes no matter what. No front wheel slip. even in the deepest snow. I don't need the switch in that car. But my GL just doesn't transfer power real well(unless I use the switch).
Also, If EITHER of the speed sensors fail, or if the AT temp sensor fails or becomes grounded, the computer control won't send any power to the rear wheels. So this switch gives you a way to get out of bad conditions even if one of these fails by overriding the computer and lockin em up.