The axle will not walk out of the spindle if the drive flange is removed. Behind the spindle in the axle ball area the axle expands into a bell to house the birfield CV joint and rides in a brass bushing in the back of the spindle. As long as you are in 2WD it will just lay static. Do your trip on a calm dry day, as the greasy shaft will attract dirt, you don't want migrating into the spindle and brash bushing and birfield area.
Unless you plan on doing crazy hard wheeling, the Selectro hubs were decent. My set has been on mine since the beginning and still work fine. There is a cammed piece that locks them in and out. I did have to replace it on both sides now. Some will say they are bad hubs, as the selector face is only held on by a couple screws and in a bind they can push it off. Hard rock hit the face could cause damage too I suppose.
Sadly I just searched some and couldn't find any new anymore. Mile Marker bought out Selectro many years ago, they carried their line for awhile, but not don't see any listed for the pre 75 cruiser. Their parts listings are wrong, it brings up the 26 spline pickup hubs for our trucks, that is wrong. I think only the classic Selectro, 6 spline hub was all they ever had for an early cruiser.
Warn used to make some, same deal, can't find them listed. AVM also makes some, those are still available I think. Best source is here on MUD used probably, should be some Selectros and Warns out there. Unlocking the front end does help with drag, but you should still be able to push through it down the highway. A tune should help you.
I'm still concerned if you left that spacer out, you could be walking the input gear into the front of the transfer case. It will ruin the seal first I suspect, then you will start transfering fluid between the cases and oddly the transfer will pump its fluid uphill and overfill the tranny.