The only way to see how it feels/works for you is to use it. Depending on how you drive, you may even be able to feel the difference in the rain. Some love it and leave the selector in auto all the time. Others never use it and, of course, many are somewhere in the middle. You will find that you get more vibration and fewer MPGs when you use it.
I use it quite a bit on the gravel roads around here. It tones down some of the characteristics of driving a 2wd on a loose surface and on gravel Auto and 4wd are difficult to tell apart.
In snow the differences between 2wd/Auto/4wd are a little more obvious, but Auto is still noticeably makes a difference. In conditions where I would expect to see black ice, or it is a strong possibility, I will stay in Auto and it has saved me a few times. The torque transfer response time is quick enough that it feel instantaneous. Still, I typically only use it in those borderline conditions where I would find myself switching from 4wd to 2wd (and back) often. If conditions are worse I will go with 4hi.
The g80 rear differential makes a big difference at slower speeds with this mode, especially in the snowy/icy conditions. The differences in tire sizes and ratings may have made the absence of the g80 diff seem more significant though.
Finally, I would recommend servicing the fluid in your transfer case if you don't know if or when it was last serviced. It will make a difference in how well Auto works. Should cost less than $30 and take <1hr if you do it yourself. I would also be careful about which shop you let perform the service if you prefer to have someone else do it. Your '04 should take the blue autotrak 2 fluid and some independent shops might not realize that and give you the wrong fluid.