(As one more thought experiment, we could toss out CD and export CS. Then CS would actually be a remote object.)
You would have to be careful not to initialize any RMI objects in local mode.
I am not so sure it's important to try to hide that RemoteException (although I did take the opposite view when talking to Marcus above).
I am so happy to know my examples made some sense to you and maybe even helped some. Thanks for considering my thoughts.