Trying to figure out if anyone has an advantage in terms of drivetrain loss, I would "think" AWD sounds like it would have less drivetrain loss but I cant tell for sure and infact I dont even know why im thinking that way.

Also whats a better set-up for launching with big power and not breaking the transfer case?

 

I think 4x4 has lower drivetrain loss than AWD. You have the option of disengaging the front axle in 4x4 but not in AWD. You also get some torque loss in AWD due to the nature of the torque splitting function of the AWD t-case.

I haven't seen any cases where someone blew up a NP t-case before they blew up a CV, differential or driveline. The t-case is a pretty tough sucker.