is it true that the EP stands for Extreme Pressure? and that is why its specified for diffs?
I think I'm right in saying EP is only a requirement in hypoid drives as thy are a lot harder on the oil. So far as I know a diff having the input and crown gears on the same level don't need the EP rating, though I've never found a gear oil to not be EP rated. Will have to dig out my college notes one day.
Yes extreme pressure as encountered between the flanks of mating gears, in gearboxes and diffs etc. It is more viscous so sticks to the face to resist metal to metal contact.