Nope, it's just that once it gets nicked it'll crumple in low range.
Honestly, it looked high pinion (did JKs come like that?) so if you stick to the lower trails I bet you'll miss it, but once you start getting in an iffy situation and touch it on a rock I think it'll twist itself up and you'll have 2WD for the rest of the day. Ever seen a driveshaft look like a pig tail?
I can't say that I've ever seen one pig tail. I'll have to add it to the sooner rather then later list before big dogs but it should be good through this coming weekend.