For sending the wife out on winter streets, I think the pushbutton and "auto" is great. I was sure to get one with 2/Auto/4HI/4LO for that reason. If you don't like auto, you don't have to use it. GM does offer AWD transfer cases, but the Denali's I've seen are full-time AWD with no low range and poor fuel economy. I never have issues shifting between 2 and 4, but you need to be in nuetral to go between H and L. If your actuator sensor is worn, you may need to roll the vehicle a bit while shifting.
There is always the short term fix of removing the actuator and shifting the case with a set of channel-locks or pliers. The shift shaft protrudes outside the case and has on oil seal on it, so it's fine to drive around without the actuator. 2H and 4L are easy to find, YMMV finding the others.
A lot of the so-called actuator failures are really sensor failures. The output of the actuator has a little resistive track sensor (potentiometer, really) that tells it the current position of the shift shaft. After enough miles the tracks wear away at the point the brushes sit all the time (i.e. in 2H) util the signal is wrong and the thing can't shift to the right position anymore. Dorman sells the sensor for like $30 and you're back to normal shifting.
In some ways, the actuator is better than the shift lever. Body/frame flex has no effect and you can't have a misadjusted linkage wear out your shift forks prematurely. I'm sure a big part of it for the OEMs is packaging. Now there's no hole in the floor to line up and seal and they can put center consoles in. But overall, yeah, I prefer the "grip it and rip it" setup.