If you put a L/S in your axle housing w/ a C. A. D. system the front drive shaft will rotate all of the time. I don't know if the transfer-case will like that ? No power will be transmitted but there may be oiling concerns with the chain spinning constantly. The Jan. on up 2002 HD trucks don't have the C. A. D. system on it and thier front shafts spin constantly, but there might ( ????? ) be an oiling improvement in the transfer - case ?
I would not think that you would have any extra steering feed back since the passenger side axle will still be disconnected but the sliding coupler may not like the added strain of engaging the two shafts with a L/S in the diff. If you do install it, I would not use the shift on the fly method; just be careful and go slow when engaging the transfer-case.
You may also feel a slight vibration at highway speeds because of the shaft spinning. That is all that I can think of at the moment as far as concerns with installing a L/S w/ a C. A. D. .
Good luck and keep us posted on what you did and how it worked . Thomas