There are advantages and disadvantages. You can never get the kind of true 4WD power transfer with a center diff that you will with a solid shaft, so as mentioned, for bashing, a center diff will be a handicap.
On the other side, just as with 1:1 scale vehicles, AWD with a center diff or viscous coupler is going to behave much better in turns than a true 4WD-especially tight turns. All true 4WD vehicles will hop when in a very hard turn on high traction surfaces, as things are binding up. On loose surfaces, you just don't notice it because the tires are slipping. They will also never turn as tight, all else being equal. Some full time 4WD vehicles have two modes of operation (full time and part time) to aid with this, and the full time setting will allow differentiation between the front and rear drive shafts to allow AWD-like handling characteristics.
Comparing my Prolite 4x4 (solid shaft, true 4x4) with my OFNA Ultra LX comp (denter diff), the contrast is very apparent. The OFNA does much better in tight turns, but the Prolite is far more capable on rough terrain. Given that they have very similar wheel base, track width, ground clearance and tire size, this difference can be mostly attributed to the different drive systems. The Prolite is fine on a larger track, especially if it's loose. But on a hard packed clay track with tight, technical areas, it can be difficult to make the corners with the Prolite, let alone choose a good line through the turn.