Flat tow 87 Zuke with True neutral

[Bigfootford]

First I hope that folks will start using this forum!

I have been flat towing my Z for years.  I did the 4.16 Tcase gears and added true neutral and the Evil Twins.  I put my tranny in 3rd gear, not 2nd. If something were to happen and the Tcase was bumped and put into 2 or 4 wd that would destroy the engine.  Well hopefully.
Now the question. 
Does flat towing in true neutral do damage to any gears or the small cage bearing?

Thanks for you tube videos!

Jim.