No Duke you're right. When in 100% locked 50/50 or whatever you want to call it when you turn tight on asphalt you can get a little tire hop and it feels just like a truck in 4wheel low on the pavement. Eats the hell out of the tires, but you get incredible grip. I won't use it unless I'm offroad(extremely rare) or snow. That being said the 2 settings closest to open diff should be fine on pavement.
http://www.driveperformance.subaru.com/version1_2/blueprint.asp