More AWD systems now use the traction control system to simulate a limited slip differential by slightly braking the spinning wheel, allowing power to be transferred to the one with traction. It works. I prefer a mechanical/hydraulic LSD, at least in the rear, but the computer run systems are pretty effective.
There seems to be three significant systems on the market. Traditional 4X4 systems like Jeep uses in the Wrangler, full-time AWD systems like Subaru (and other makes too...) and slip/grip part-time AWD systems that are basically FWD drivelines that can send power to the rear under some circumstances.
The problem with traditional 4X4 systems is that they need the operator to know how and when to use them. They operate in RWD mode most of the time, and users need to understand how RWD handles differently than FWD. This is why you see Jeeps and pick-ups and truck-based SUVs in the ditch on snowy days. People think they're invincible, and they often can't use the system properly.
Full-time AWD, in my opinion, is superior to the slip/grip systems. I was on a ski trip recently with a friend of mine that has a Highlander Hybrid. It's a gorgeous vehicle that has tons of goodness, but the AWD system feels terrible compared to my Subaru. We did get up a steep access road that had stymied all the FWD vehicles (the Highlander is on Blizzaks) but the system didn't feel anywhere near as confidence inspiring as my Forester. The main difference was in cornering, and the switchback mountain road gave me plenty of opportunity to gauge the difference.
What about on dry roads? Well, I again prefer the full-time AWD systems to the part-time. The addition of power to the rear tires makes for a much more balanced feel and less understeer.
All that said, no matter what system you have, 4X4, RWD, FWD, AWD, it's usually all about tires.