I am no expert, but it looks so simple I wish I'd thought of it. Forgive me if my grammar is a little off, I'm recovering from a severe case of the flu, heck of a way to usher in the new millennium, 3 days in bed and living off Thera-flu, Nyquil, and Robitussin.
The throttle linkage acts as the lever that moves a pin that allows both sides of the swaybar to separate. That's what the large silver thing is. It houses the two ends of the swaybar inside. When you pull the lever, the two pieces of the swaybars move independently of one another. Acts just like removing the disconnects, only you're doing it further up the line. You stop on level ground and move the jeep until the lever goes back in (like a D300 xfer), and you're reconnected.
I have never seen one so correct me if I'm wrong, but it looks so simple I'm going to make one for the TJ.
JEEPN
'97 TJ Sport
'81 CJ-8 Scrambled!
'71 Commando SC-1
'51 CJ-3A
'47 CJ-2A