Yes, true. LO range limits the vehicle speed and that's where problems in LO happen - the driver feels it's going slow, so s/he keeps it floored and screams around at high revs.Richard Moss wrote: Because the torque is all being passed through the reduction gears in the transfer box (AKA transfer case) then for a given vehicle speed you have a higher input shaft speed. That higher input shaft speed creates additional heat in the box and that could lead to over heating and potential damage to internal components
But let's say comparing 1st HI at 30kph and 3rd LO at 30kph both at 3500rpm, there should be no issues of strain or overheating. In both cases the revs are 3500 so the engine is turning at the same level of strain, the gearbox is turning different diameter gears (1st and 3rd), and the transfer case is turning different diameter gears (LO and HI).
So instead of comparing ground speeds between HI and LO, it's better to compare revolution speed (rpm).
One point to add to Richard's caution about speed is that if you look at the diagram again, you'll see that the teeth on the HI gears are cut diagonally (helical), but the LO gears are straight cut (spur). Wikipedia explains that:
"...spur gears are used for low speed applications and those situations where noise control is not a problem, the use of helical gears is indicated when the application involves high speeds, large power transmission, or where noise abatement is important."
http://en.wikipedia.org/wiki/Gear_teeth#Helical
So by design, it is clear that LO gears are not for high speed use (speed calculated as rpm, not actual ground speed).