I had built and tested a DVD before submitting the changes, but I've also done multiple installs of the Aug 18, 23248 snapshot and it's using the local repo during installation and during Diskless_CreateTBZ.sh and MDs have access to it after creation. If /usr/pluto/bin/deb-cache can be kept up to date when the core updates then the MDs will have access to updates without having to re-dl them.
I've only been waiting for a repo update to verify that apt is seeing updates properly before I'm fully satisfied. Have you any updated .debs to throw in the repo? :-)