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That's a pretty good summary. You can use the 4wd where any slippage might be present, including wet roadways, but don't make a habit of it.
Yes, 2003 thru 2009 models have AWD capabilty on all the 4wd models. For 2010 Toyota made one less improvement by only giving the AWD option to the Limited..........the other models are now 2wd or 4wd only.
The Sequoia has AWD capabilty on the SR5. Another brand that has full-time 4wd on all 4wd models is the Jeep Grand Cherokee, however the Laredo model doesn't have a low-range. Right now they're about $10,000 off MSRP as the 2011's are coming, but Jeep has so-so reliability, and the dealers apparently hate warranty work from what I've read.
In all honesty, get SR5 and you'll be happy.