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most AWD cars are like a DSM drivetrain. the front differential is usually always inside the transmisssion. also, there may be a center differential, but not always.
the "transfer case" is acually just an angle gear.
on a truck or SUV type 4WD system the transfer case is more like a center differential, that will also let you change from rwd to 4wd and also change gear ratio's. The external differential is mainly due to the engine layout. there is quite a ways between the output of the trans and the front wheels in the eypical RWD layout.
In a transverse layout the trans outputs are going right to the wheels anyways, thus taking away the need for a front driveshaft and external diff.
i have yet to see a transverse mounted engine with a AWD drivetrain that has a external front differential, but i am pretty dumb and inexperienced, so that doesnt mean much
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