You can swap out the TC, but if you are doing so to save gas you wont notice much differnce unless you also convert the hubs to PT4WD
The TC in these trucks throw the power to the axle with least resistance, therefore if you drop the drive shaft the truck wont move unless you put the TC in HI or LOW LOCK. when in the lock position you should keep the speed below ( I think ) 40 MPH The full Time 4WD system has it's good points and bad points, but remember , it was designed to be used as a "system " to start removing parts or replacing parts with another system won't gain you much of anything in this case.
That being said, many people have converted these trucks to a PT4WD by swaping out the TC
AND the front axle. Mile Maker also makes a conversion kit for the hubs, but from what I have heard, they do not save enough money in gas to justify the cost of the kit.
My 318 is a beast, it can turn low 9s in the 3/4 mile,