agreed on the driveshaft.
It's important to note that the manual recommends transmission in N, but Transfer case in H2. My instinct has historically to put the transfer case in N so that the gears are not spinning. However, leaving the transfer has in H2 would have the effect of spinning all the transfer case gears, which would properly lubricate the transfer case bearings. It would also spin the output shaft of the transmission, which should likewise splash lube some of the bearings in the transmission.
The risk of flat towing with the driveshaft attached is that you risk not spinning the gears which is needed to splash the oil up on the bearings. (because your transfer case is in N instead of H2), and the bearings run dry. The H2 transfer case setting should mitigate that risk by spinning those gears and flinging oil.
Indeed, tow truck drivers avoid all this possible damage liability by just dropping the rear drive shaft. It's just 4 bolts and a zip tie to hold it up - cheap insurance.
If you flat tow often, it would be interesting experiment retrofit locking hubs on the rear axles (assuming they are Full Floating style rear axle), or even pull the axle shafts for a long flow tow across the country (again, assuming the rear is Full Float style) . Wait, what am I saying? That is a terrible conclusion. If you have to tow often, put it on a trailer. Trailer tires and bearings are way cheaper to replace than Land Cruiser parts.
Moral of the story - don't flat tow a split case equipped truck with the transfer case in N, as it will run your needle bearings and rear output bearings dry. (I don't know about other transfer cases, but the theory probably applies - this is a very narrowly scoped morality tale!)