Well, this is an opinion column. My 40 had a 3 speed for many years and I drove it many, many miles during time both on and off road. Simply put, I'd never go back to it. And when I said they fell apart, I meant actually FELL APART and not during disassembly. Multiple input bearings with separated races and those were behind both stock Toyota "F" and V8 engines.Not sure I would trash the three speed that much. Plenty of them still around even attached to V8s. Once the four speeds came out some markets switched back to a three speed because of how simple they are to work on with just simple hand tools. It was for this reason rural locations that wasn't just a matter of calling a tow truck continued to use the three speed. Common knowledge you can use the early one piece case with the four speed. There is also a gear to use later one piece case with a three speed. After the four speed was NLA available you could still get new three speeds from Toyota. The mid 63 on three speed had a much longer run then the sixteen spline tailshaft four speed which tend to wear. I've even heard Toyota used the three speed with a split transfer case in a few markets. Not saying the three speed is as nice as the four speed but certainly wasn't junk and pretty reliable. When you say they fell apart when you took them apart that was by design not needing a press like the four speed.
The stock 3 speed transfer case can be made to be quite reliable if properly rebuilt and braced up. I've managed to spin some bearings and that's about it.
