Sure, AWD is great for some conditions. It’s not necessary for most, and with good tires a FWD can be just as safe. The problem is that full time AWD is less fuel efficient.

It makes an obscene amount of difference.

A FWD wagon will practically get stuck on wet grass if there's even a slight incline. AWD is a ton better. And I say this as someone who has FWD and AWD variants of the same station wagon in my garage right now.