One of my favorite topics. I'll take a different path to promote further discussion, but for starters I'll say an LSD (even a repacked one) isn't a true substitute for a locker. They're great for having a street and trail balance, and they can be made to do very well off-road, but they're simply not a locking differential.
If there was a traction level chart that was specific to our trucks based on available device options, it might look something like this:
Level - Front Diff, Rear Diff, Suitable Trail Use (Green/Blue/Red)
0 - Open, Open, Green
1 - Open, LSD, Green
2A - Open, Mechanical, Green/Blue
2B - Open, Selectable, Green/Blue
3A - Mechanical, Open, Blue
3B - Selectable, Open, Blue
4A - Mechanical, LSD, Blue/Red
4B - Selectable, LSD, Blue/Red
5A - Mechanical, Mechanical, Red
5B - Selectable, Selectable, Red
Clarification points:
For LSDs, there's obviously a scale between OE-spec LSD units and re-packed units, but they're still in the same traction level.
"Mechanical" refers to auto-lockers (auto-unlockers, lunchbox, etc.) like Lokka (front) and Blokka (rear) units.
"Selectable" refers to any locker that can be disengaged on demand, regardless of actuation (air, electric) : ARB, TJM, TRE
Selectable lockers always have the advantage over a mechanical locker because they can be disengaged. This is particularly important when in tight steering situations, and everyday street driving. (This discussion ignores the use of manual hubs.)
Levels 0 & 1 are still fully trail-capable, provided all tires stay on the ground. Once one tire lifts off the ground, especially on an incline, limitations immediately kick in. Notably, it's relatively easy to lift a tire with IFS.
When coming from Levels 0 or 1, I advocate locking the front diff (level 3) before locking the rear (level 2), mainly because of issues that can occur when a front tire is off the ground and not rotating in unison with the other tire. That is, if you have a front tire spinning off the ground and you land on it, it's bad on the CV, mmmmkay? I'd skip level 2 for the most part.
Level 4 & 5 do great for wheeling, provided you're mindful that an LSD is not a locker and that, at some point, it will start to act like an open diff. Red usage would basically warrant a re-packed LSD.