I actually think it would be pretty cool the have a 4wd wagon. But if I were going to do it, it wouldn't jack it way up. Like all my mods, I'd want it to look like the factory put it there.
I'd want to use an independent front suspension. S-10 trucks/blazers and some 1/2 ton trucks already use the 4L60e trans and 10 bolt rear so just add the transfer case and tail shaft, shorten the driveshaft. Then it's just a matter of installing some IFS that fits under the oil pan.