How do you propose that would eliminate any need for electrical modifications? A signal will still have to go to the ECM/TCM to let them know when the truck has been engaged in 4wd so they can use the appropriate tables in the tuning for 4wd mode. If going to a remote transfer case, while it might not be 100% necessary to get the truck to function in 4LO without it, it'd be best (and not a jerry rigged setup) if you get the speed sensor POST transfer case just like it is in the gm800-900 trucks. Again, that way the computers know when to tell the transmission to shift properly.
The only thing electrical that would be eliminated that way is the ground wire that controls the actuator on the front IFS diff. which we've already discussed can be done easily or done away with entirely with a Posi Loc kit.
So, NO. I'm convinced that going SFA will actually be MORE work than converting his front 2wd IFS to 4wd IFS especially if you are talking about divorced np205 transfer cases. Doing the later (sfa w/ divorced 205) will require a LOT more fabrication just to mount the pieces and then have to retrofit electrical components to pieces that never had elec. components before. Anything is DO-ABLE though.
Now if he was willing to give up the alli in favor of a manual tranny, then I might give a little more lean towards SFA because then the hardest part would just be the mounting of the axle and xcase and it opens up some options on transfer cases depending on desired application of the truck. The ECM would never need to know if it was in 2wd or 4wd if it's a manual (although I'm thinking the manual tranny trucks DO still know when it's shifted into 4wd) and there is no TCM to speak of. The engine will run the same either way, and the man in the seat controls when and how it shifts; not a bunch of computers talking to each other coming up with what they think is the right time to shift based on too many sensors regardless of what the driver might be thinking is the right/ideal time.
When they (the computers) are right though, they are a thing of beauty!!
C-ya