Yep, if you have a front locker you seriously compromise steering on slippery surfaces and add a lot of stress to front drive shafts, particularly to CVJ's. With a rear and a centre locker the traction control on the D3 still operates across the front wheels but at the same time you get to keep pretty good steering, especially in deep sand or mud(Turn of DSC). The compromise would only be on steep hard surfaces that some HP would be lost to the brake action of traction control.
If you put your D3 in the position of the video example it only stay like that at idle, as soon as you add any significant throttle the traction control activates and starts braking the airborne wheel to drive the grounded one.

