I think CL's post rings true, I know it's a clutch in there (as opposed to a pinion or other device to mechanically lock it) which is why it can be (de)activated so quickly. Mechancial devices may need a slight rotation to align cogs or what-not, and are sensitive to torque input when (dis)engaging. So if it is a clutch then it won't be 100% in theory, but in practice I very much doubt you'd be able to slip it, something would probably break first.
An interesting question; is the clutch either 0 or 100, or is there an in between setting. I suspect it is 0-100 and ETC takes care of any interim values, with ETC dropping out when the clutch goes to 100. Still works on the front unlike Toyota and Mitus's implementations.

