This is good news for GV with cast diff. I heard from Suzuki that 2004 XL_7 diff is a  reinforce design. More tough, and more reliable.
This is the pic of 2003 XL_7 diff.

That's the one. If you notice the line under the housing coming off the crossmember, that the pressure line which engage the front differential to work.
I haven't gotten to the diff, but from my understanding, this engages a collar on the driver's side, which then engages the spider gears which in turn spins the axle shaft. From your picture of the '04, there is a motor on top of the diff and is integral of such. To add, it looks electric.
As for the better design, why didn't they use only one CV axle shaft for it's design? This would save on manufacturing, installation, replacement, etc. costs.