Your assumption is right there will always be some power directed to the front wheels,I would keep it in high not high lock that way the front wheels wont be locked in and working all the time, just when there is a loss of traction. Not one of Dodge's best innovations. Ive even known people to remove the front drive shaft so that they can get at least some decent gas mileage when its not mud season.
There is a plastic rod inside of the shifter arm, it unlocks the shifter from the park position when the button on the shifter handle is pressed. So, press in on the shifter button and pull the shift handle straight UP (you might have to pull hard). You should be able to remove the broken pieces of the plastic rod with some wire. You might have to go to a junk yard for a replacement.
You should check on the recalls for your specific vehicle and/or call Daimler Chrysler. There were recalls on the shifter, but I do not recall what year(s). Once you find that out, your nearest Jeep dealer will replace the shifter at no charge. This issue was dealing with the shifter popping out of gear when parked OR when driving. Good Luck!
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