Re: ATLAS 2 -
I don't see why not.
I wouldn't use it with Overdrive on the transmission, like any lower 4WD range overdrive gear cannot take the strain.
Otherwise isn't the crawler gear (like the Klune V?) just a reduction? So it's like putting your transmission A in granny gear 7.xx first except that you have transmission B with 2.72 first and the Klune V with 2.72.
From the transmission side I would expect it wouldn't be any more stressful than having the transfer case engaged in low (3.0 maybe), which again you should have the OD on the transmission off for.
This is just a guess, I'm not really sure I know what you're asking.
And yes, there is risk of damage. Is it any more than any other use or not having an underdrive? Probably not.