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Yeah, in that application it probably wouldn't kill it. However, dropping the front shaft will have just as much mpg benefit. Plus, with the more flexible axle shafts in the d30 (as opposed to the D44 in a Rubicon), there will be noticeable torque steer. Not to mention the FWD handling deficit, particularly in a vehicle that wasn't meant to be FWD.
EDIT: Oh yeah, and you'll wear out the t-case chain faster too, due to feeding full drive power through it all the time.
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Call me crazy, but I actually try for mpg with this Jeep:
Typical driving: Back in Rochester for school, driving is 60 - 70% city
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