Here is my take on road holding and drive wheels:
When you apply power to the drive wheels a RWD will over steer and a FWD will under steer. When you back off with the right foot the opposite happens.
It is very easy to test, find a long sweeping curve and go into rather quickly. When the car starts to lean, play a little with the right foot. Feel how the steering responds to acceleration and deceleration respectively.
In rally terms a RWD is fast in and slow out of a corner and a FWD is slow in and fast out. The main reason for rally cars to go AWD, is the better acceleration out of corners from powerfull motors.
In the old days could a RWD Nissan Skyline and a FWD Golf go neck and neck for a whole weekend. Some conditions will benefit RWD and others FWD.
Very few drivers are likely to have the correct skill and experience to use his right foot correctly in a cornering emegency. Lets say you go into that long sweeping corner too fast and your RWD car is starting to drift to the outside. What should you do? ACCELERATE - the tail will come out slightely and you will get the nose pointing into the corner again. Once you have achieved this, you can back off a little to try and bleed some speed off. This process could be required quite a few times durimng a single corner. Schumi could do this so fast that the Benelton F1 telemetri (on the accelerator) failed to pick it up.
The beauty of FWD in the same corner, is when your car starts to drift all you have to do (and this comes instinctively) is to back off a little on the throttle. This will get the nose pointing back into the corner AND scrub off some speed all at the same time. A rally driver will give his Golf's steering a good old yank (in the opposite direction) at the entrance to a sharp corner, this would unsettle the tail and produce an oversteer situation as he enters the corner. Now he can make some noise with his right foot to get extra speed and to correct the oversteer.
Now to get to our beloved Pajeros and this thread: If you have a newer Pajero with traction control (T/C) everything I said above makes no real difference. As soon as the sensors spot oversteer, they react dramatically by applying brake force to the required wheel and the power from the motor is reduced. So even if you are an experienced, spirited driver and want to use your right foot correctly, the T/C system does the opposite and saves the day (and your bacon). I am prepared to take a big wager that a T/C Pajero, on a dry tar road, will have zero handling benefit by going 4H. On a dirt road the only benefit is that you would be faster and deeper into the corner before the T/C has to save your day (and I imagine even more dramatically so).
I still maintain the following:
If I think there is a possibilty that the rear wheels will scrub for traction every now and then, 4H is my option of choice.
If I know the rear wheels will spin every now and then, 4HLc is my choice. I NEVER lock the centre diff on a dirt road. I have no doubt that if you need to lock the centre diff (which produces massive under steer) to make your car stable, then you either drive like a maniac or you have a rubbish suspension (either by design - no names here

- or through wear and tear). If you need to corner quickly in 4HLC, you are going to go off on the outside of the corner - another wager I'm prepared to undertake.
As a matter of fact I only run in 2H on all "high speed" dirt roads.