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I'd like to find out what a part time 203 does when the chain gets stretched. Difficult shifting, speed varied 'knock' or 'bump' sound in loc positions? Anything would help.
Look under the tech section, there is an excellent article on the milemarker part time kit and describes some of the symptoms you talking about. Yes, chain stretch in addition to other worn out items can cause a bump, or slop in the drive train. The article also does an excellent job of explaining how a 203 works and its weaknesses.
By the way, milemarker also has a kit for adjusting a stretched chain.
It will make it's life longer if you can adjust it right the first time plus gives you the option of readjusting when you start feeling some play.