That AWD system is similiar to what is used in the Suzuki SX4. Even with the vehicle in FWD mode you are still powering the driveshaft. There is an electronic clutch pack at the rear differential that is ' disconnected' in FWD mode. You also have the drag from the axles / rear differential when in that mode.
In theory it should be better on gas but on the SX4 forum I'm on, the guys that run AWD all the time are getting similiar fuel mileage I get where ours is in FWD most of the time. Honestly the only reason we use FWD mode mostly is I hope it will extend the service life of that rear clutch pack with it being disconnected, which I could be completely wrong there.
One area they are reporting a downside of full time AWD is rear tire wear.
We don't have to mess with fuses or anything, we have a 3 way switch to select between FWD / AWD / or LOCK ( 50-50 split)
[This message has been edited by jelly2m8 (edited 05-03-2012).]