Exactly. On a stock Cruiser, to put the t-case in neutral, the shifter is put into 4WD, then slipped into the neutral gate between Hi & Low.
This has two undesirable effects.
First, it locks the frt & rear driveshafts together. Now , even though the shifter seems to be in neutral, both frt & rear driveshafts and all the front axle guts & birfields are spinning at 70 MPH. That could be a bad thing if any of those pieces have been modified or are worn.
Second, the hi & low output gears are both uncoupled from the spinning output shaft. At 70 MPH, a Cruiser might have a driveshaft speed of 3000RPM. driving normally, the high speed gear is locked to the shaft, and the low speed gear is spinning on the shaft at approximately 1/2 speed. All the gears in the t-case are spinning, throwing oil everywhere. In neutral, instead of a maximum speed differential of 1500RPM on the low gear, both gears are being held still on a shaft that is spinning at 3000RPM!

And there is no oil splash lubrication if the gears aren't turning.
This is not nearly as big a concern if a hybrid t-case is built using the roller bearing gears & output shaft from an FJ62 T-case, installed into a 86-87 FJ60 t-case.
The simple solution is to remove 4 nuts & bolts from the rear differential flange, then strap the d-shaft up against the frame rail. that means no excessive speed on the plain bearings in the t-case, and no spinning of frt driveshaft & axle.