Hi,
You have a separate button for the hubs because you have electric hubs, us mortals with UK cars have manual hubs and have to get out to lock them. I guess it is easier for toyota to fit a separate button and keep the H4 swtich the same than it is to put it all into one... True you would not want H4 without hubs locked but to lock the hubs without 4WD is not so stupid, it allows the drive shafts and diff to be lubricated on road without wind up... I never unlock my manual hubs. You can engage/disengage H4 on the move up to 66mph (100kph), Likewise I guess the hubs, just don't do it in a bend or if you're already spinning wheels. Should the electric hubs fail the easiest option is to replace with manual hubs, common to Hilux, and Nissan and other vehicles, Aisin hubs are a Toyota company.
I guess the H4 is on a switch and low4 on the lever to make it easier to make 'flying' changes between 2 & 4WD without groping on the floor for the lever at 60mph, I used it all the time on the ice roads in Canada.