I actually installed that type of diff on my silverado. While it worked extremely well, it still acts like an LSD when one wheel comes off the ground... power doesn't transfer to the other wheel. The QD-II system locks the axles together. On the street it acts as a variable LSD, and offroad it'll lock them up and keep them locked until it's not needed. I'm quite impressed with the system.
As far as reliability goes, i've yet to hear any issues with the EGerodisc differentials used in the Commanders and Grand Cherokees.
Another thing that I like about these model years is that the rear axles are full floaters. Definitely a "nice to have" for wheeling.
Note, although now own a Jeep, im not a jeep advocate. I am one of the least brand bias persons alive.
. A definite "pro" for the explorer is aftermarket support... the XK and WK lineup is VERY limited in terms of upgrades available to the drivetrain. But if you get a QD-II system and 3.73s stock, you really won't need any drivetrain upgrades.
.... on the other hand, if you're targeting deep mud runs, then I'd definitely lean towards the Explorer. Fitting huge tires is very difficult on the XK's and WK's, and if you make them fit, you're limited in available gear ratios. But for any type of trail riding.... I've seen XK's tackle trails that other modified vehicles with more flex and bigger tires have struggled on (especially at MOAB).