The main advantage I see to the chain setup is that the portal housing isn't trying to blow itself up constantly(from gear spread). The rotation issue is one of the advantages I see with a traditional geared portal setup as it allows you to take a LP diff, flip it over to reverse the rotation, gain ground clearance and maintain the strength of a LP diff.
I also think if you were to find a magical chain that would hold up to this, that it would be easier to put the knuckle outboard of the portal box and run large diameter wheels with a large offset so that they sink back around the portal box.
I also think if you were to find a magical chain that would hold up to this, that it would be easier to put the knuckle outboard of the portal box and run large diameter wheels with a large offset so that they sink back around the portal box.