For many folk AWD is a very occasional need when traction is limited at slow speed - snow, slightly muddy field at the gymkhana or day out. Most vehicles with decent tyres will never need AWD.
In over 50 years and 500k of motoring I have never needed AWD, although it has been close a few times. I would tend not to go where there may be a problem anyway.
This is separate from the essential requirement where the vehicle is frequently off road, towing heavy loads, more extreme weather etc. The mechanical approach to AWD adds weight, fuel consumption, complexity, cost.
For the occasional need it make more sense to design cars with in-hub, low power electric motors, deployed at low speed only (up to 20mph?). Power assistance can be controlled with sensors, just as electric power steering retains weight in the system.
Powering the system would place insignificant load on batteries in a hybrid or wholly electric vehicle. Lighter, less complex and probably cheaper. With some ingenuity existing hubs may even be capable of redesign to allow retrofit to existing FWD vehicles.
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