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Let me explain:
If your Outback is a Manual, it will have a standard viscous liquid center differential which will give the Outback an entirely different feel on the road than your Sequoia. If on the other hand, you have the more common Automatic Outback, you'll have an open center differential with an electronic system similar to that in your Sequoia.
Once again, because these systems have an open center diff they will be incapable of "pulling" the frond end through a turn or for that matter through anything unless the rear slips, forcing power away from the tires with the least resistance and least traction (most likely rear) to the tires with greater traction (front).
In fact, unless you got that Outback with the optional viscous liquid rear differential, you in reality have a one wheel drive vehicle until that one tire slips. Prior to that one tire slipping, the open drivetrain will force equal distribution of the power equally to all 4 wheels so long as the resistance is equal. As resistance increases on the front wheels (for example during a turn) power will be redirected to the tire(s) that have the least resistance (most likely one of the rear tires).
If you have the optional visc liq rear diff on a manual Outback you have a well layed out awd vehicle for dry and wet road performance (that's why the hi-perf WRX comes with this type of awd system). This type of system would be comparable to the Denali, Escalade, Porsche, Volvo and other higher performance vehicles.
If, otoh, you have an auto Outback without the optional lsd in the rear, you have a system that would be considered awd in name alone. In fact, that's why it would feel the same as a Sequoia.
Both of these vehicles, with open ctr and rear diffs, will never have more power going the front wheels than the resistance will allow. As the resistance on the front wheels increases the open diffs will direct the power to one of the rear wheels. They will continue to direct power away from the front wheels as resistance increases until the front tires reach 0% or until one of the rear wheels slip, whichever comes first. If slippage occurs first, the electronics will re-direct power through the open drivetrain back to the front wheels. In a turn (whether its dry or wet), that's the last thing you really want.
Both systems are ok for transferring power, once slippage has occurred but they are not nearly as surefooted as an awd system that puts power at a corner of the vehicle and keeps it there even as resistance increases.
Hopefully, that wasn't too confusing. Here's a site that can provide you some of the details of the different awd setups in the Outback depending on which model and which options you purchased <http://www.subaru.net/usproduct/2000/overviewspecs.htm>
A quick google search turned up many references to how and when MD's wear out.
"High levels of "clutch preload" will result in good torque transfer but some chattering of the clutches during cornering may occur. Lower levels of preload results in minimal chatter but reduced levels of torque transfer to the wheel with traction. Because LSD's restrict true differential action, tire wear is accelerated. Changes in vehicle handling may also occur, particularly in short wheelbase vehicles. Wear rates on limited slip differentials are generally higher than on other types due to the reliance on friction to reduce wheel slippage. Also, special lubricants may be required to minimize rough and noisy operation."
On locking differentials:
"While automatic locking differential provide excellent performance off road, vehicle handling, particularly on highway, is sacrificed. Unlocking during cornering can be sudden, resulting in a rapid change of direction, particularly in short wheel based vehicles. During sharp cornering an audible racheting sound usually occurs as differential action takes place and a loud banging noise may be heard when the unit locks up again. Tire wear usually increases"
This can be found at http://www.offroaders.com/jeepfan/difftech.htm
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