According to one popular 4runner info site, in '01 they gave the "4x4 models a standard multi-mode four-wheel-drive and four-wheel traction control (Active-TRAC). A center differential lock switch has been provided on the instrument panel so that the locking and unlocking can be controlled by the push of a button, rather than through the 4WD shifter." I'm not sure if that system is better or more problematic, any input/opinions/experience/help there?
As far as off-roading is concerned, it's far preferable to have a rear locker instead of Active-TRAC. My friends that have the '01 and '02 4Runners with the multi-mode and Active-TRAC do OK on tough trails, but it very definitely is not as good as simply having the rear locker. In fact, the off-road breakage of front axles of the '01 and '02 follows what you would expect with open diffs because the driver can't get up stuff and the wheels end up spinning. Spinning and bouncing often results in breakage. Since the '01 and '02 don't have a rear locker, the drivers do what they can to get through stuff, including more throttle. To fix it, they can add a rear locker. They still have the center diff that the '99 - '00 "highlander" doesn't have. I haven't seen or heard of the center diff breaking. One other remote possibility to mention -- if you ever plan to add a 2nd transfer case, it won't fit on any 4Runner with the multi-mode 4x4 which has the center diff and thus a larger transfer case (unless you relocate a frame crossmember and the gas tank, etc). There are '99's and '00's (Limiteds only) that also have the basic multi-mode system with the larger transfer case. With my auto tranny, I haven't found the need for a 2nd transfer case, but those with a stick shift will be wishing for one on the tough trails.
They also discontinued the DL option <img src="/forums/images/graemlins/frown.gif" alt="" /> in 4runners from '01, so my question is that if you had to choose between an '01 without a locking rear diff or looking for an '00 non-sport with the optional DL which would you choose and why?
I'd probably keep searching for a '99-'00. But there's also the possibility that you could add a selectable rear locker to any of those possible vehicles. Rear lockers were options on ALL models of '99-'00 4Runners. You could add an ARB locker to the rear of any year 4Runner if you want to do the tough off-roading.
I've grown to prefer the Toyota e-locker in the rear instead of an ARB, but that's just because it's more robust and arguably less complex. If you do ice driving, you'll want a selectable locker so you can drive with open/open diffs on ice. That's how I do my ice racing too.
Is the '01 and up 4wd system that much better?
No. Toyota aimed it at the average person who might use 4 wheel drive on "rough" gravel roads or in snow. Active-TRAC works great for those situations, providing a little help to brake the spinning wheels on each axle. It's just no where near as good as the rear locker for tough stuff off-road. Toyota figured that the rear locker is too difficult for the average person to understand what's going on, so they made the vehicle smarter for some common 4x4 situations so the driver isn't expected to understand the 4 wheel drive system. Granted, I'm sure the majority of 4Runner owners don't understand the rear locker if they have it.