Can I use Atlas II to avoid Regearing?

My JK is stock (3.73 gear ratio, manual, 2.7 transfer case) except it now has 35 inch tire

I am planning to regain the lost torque (due to bigger tire) back. The only way
I know before is regear to 4.88 or 5.13. but it is a expensive and complicated job to do

Then I saw an AD about Atlas II transfer case, which not only provides super low
10:1 ratio 4L. It also provide other modes like 4H, 2H, 2L. And it seems the 2L
can be used for front or rear wheel only.

So I wonder, if I install Atlas II, and put it in 2L mode while driving on street,
will it have the same effect as regearing?

But I wonder may be this is not good idea because transfer case is supposed to work for low speed driving? In normal situation, I put my stock transfe case in 2H while
driving on street, I guess this time the torque from engine goes
directly to axle so transfer case is not actually working?


If I put atlas II in 2L, the transfer case will defintely have its gear run. So
I wonder if I drive on the street, will it cause the transfer case overheat?