Directly out of my manual for a 98.5 SE Sport
about using the FLR/DEF or the DEF mode...
"The A/C compressor (if equipped) will function to dehumidify the windows provided the outside temperature is above 10C (50F)."
It is made to work that way unless you modify it. I do not notice any pulsing of the engine at all when using the A/C. I also only notice a VERY minimal power loss with the A/C running. This is the only car I have had where I can say that about performance problems with the A/C on. It is a joy to drive in all weather!
About the option of A/C or not, our '93 Escort wagon has the A/C on or off option incorporated with the fan blower dial.
Keith W