Yeah, the auto-hubs on my old Geo Tracker worked the same way, though back when I had that car I was totally uneducated about 4wd systems. For now I don't anticipate any major off-road adventuring with this thing, so swapping hubs can wait for a while.

1989 Dodge Raider V6
2001 Jeep Wrangler 4.0L
2008 Toyota 4-Runner SR5 4wd