[phantomrt]

I wouldn't run without that needle bearing thing. Assuming the output shaft splines and transfer case coupler splines are perfectly tight with each other, then yes, that bearing, in theory, won't do didly squat but take up space as the shaft will ride on the transfer case bearings and be perfectly happy. But these output shafts will wear over time (unless someone has a permanent solution to stop it from happening) and play is going to develop and that output shaft is going to start wobbling.

That, and when the parts are under tension, that output shaft may be much happier with the bearing's support if the tension causes the shaft to flex and such.

Those are my thoughts on it. But then, I've never tried running without one of those bearings. Maybe it'll be fine, but I'm going to vote No.