Great thread and read..
Personally, I love Atrac married with lockers. Probably, cause like Ace, I have experienced the incredible ease it gives to wheeling all kinds of terrain in Moab and Southern Utah.
We have used it for really tough wheeling and mild wheeling. I used it back in 2008, on the Rubicon and it worked flawlessly, that is not easy or occasional wheeling.
The trouble I have seen with Atrac is that your equipment and driving habits have to be right. In a 4runner or FJC, I think it is hard to destroy diffs with using Atrac, although Like Scott mentioned early on in this thread, it can happen.
I have wheeled almost the same trails, except the Rubicon with just Atrac in my 4th gen 4runner and my '01 100. On certain features, folks in our groups with only lockers and no experience with Atrac, just watched in amazement how the rigs crawled right up with ease. And how the Atrac was clearly working the feature we were climbing. Don't forget where these rigs are being tested in japan....Mt. Fuji is now walk in the park.
The front diffs are weak in the 100 series, especially in the 98/99s, you could blow a diff in snow in the parking lot.. It has been argued that Atrac contributed to this issue.. The 00-up 100s have stronger front diffs but if your going to wheel them, your going to eventually blow the front diff, unless you upgrade and at that point, perfect timing to add in a front locker. I am also sure the contributing factor to 100 series issues is the weight and power. With a 100's weight and V8 power, your gonna find the weak link in your build when pushing it in tough terrain.
Having never driven just a locked vehicle without Atrac, I can't say which is better, but having driven Atrac with and without lockers, I would say for me it is a must have. It makes easy work of very extreme wheeling and you get used to hearing that unmistakably unique Atrac sound when it is working.. Makes you feel good!!
Now with all that said, I heard from a reliable source that Toyota was considering pulling Atrac recently but after some marketing folks wheeled with Atrac in Moab/Ouray, they agreed it needed to remain in the US based vehicles.... "Now, you know the rest of the story"