I am doing it because I don't like the puddle of oil that ends up in the hull. A clean hull is perfection. A filthy hull is a fire hazard, will collect debris where is is unwelcome (stones, errant nuts, etc can puncture the oil pan) and contributes to the heat in the engine since the sludge will act as an insulator on the bottom of the oil pan.
Mechanically, too much oil in the transmission is going to result in it coming out the input shaft retainer and into the clutch housing, since there is no positive seal in that location. Too much in the axle housing will stress the outer hub seals. Too much in either one can result in foaming which will not cool the gearboxes properly, although really, for the distances and speed I put on foaming may never be an issue.
I am not curently running a seal in the differential (although I do have one on my transmission couple with the sealed bearing) of my mk1 carrier at home. It leaks constantly at the coupling. I have to change engines as I am currently runnin gan 8BA and have a coupel of good TL engines waiting their introduction.
I cannot count the number of M113 operators we sent into the hull with rags and a putty knife when we would pul the enignes. Same requirements between both hulls. I spent more than a few hours washing out the hulls on the M113s that I was issued over the years.
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