Just taking out one driveshaft from a 4wd vehicle may not help with fuel economy, while taking out pieces of the transfer case would, in some vehicles.
I suspect that entirely replacing the transfer case with a straight driveshaft, if possible, would be far more useful.
If it's part-time 4wd then it could be a good idea, but if it's full-time AWD with a center differential then you're probably looking at trouble...but those usually don't have anything called a "transfer case", I think.
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