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.

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.