Exactly this. The best ones are entirely mechanical, without any fancy computers or even viscous couplings. Audi sold (sells?) IMHO the most sophisticated AWD system on the market, which uses a system of crossed helical gears to continuously and instantaneously redistribute torque proportionally to wheel traction, up to a roughly 80-20 split. There are no computers and the whole thing is mechanical. The differential is a minor mechanical miracle sold under the trade name Torsen, short for "torque sensing." Despite Audi's German-engineering themed marketing, the differential was actually designed by an American.
In the 80's, the station wagons even had a manually-actuated center locker, which was eventually replaced by a servomoter driven locker. I don't know what the new ones have.