MobileBackup caching feature would confuse things in that scenario and mess up my backups. I've been doing this for a long time, manually flipping the save location when I'm at home vs at work (BTW, it would be nice if OS X would take care of that for me automatically). I'm in the habit of running two TM backups: one at work and one at home. Anyway, I did the disablelocal thing and that definitely did recover my disk space. I didn't wait long enough to see if it would then give me back the space on my MacBook drive but I assume it would have in the end. It would have then stayed there for ever, taking up unnecessary TM space. MobileBackup folder in one afernoon! When I reconnected with my TM drive, it went into frantic backup mode, presumably moving those (completely useless and redundant) 32GB of data onto my TM drive. Unbeknownst to me, Lion's new TM caching feature was saving copies of this very large file. Once of the things I did was bring in a Parallels virtual machine file that I had saved on an external hard drive, and then, later on, move it to a different location. I was moving some files around to clean things up on my MBA. I'm anxious to move as many clients to Lion, for this, and for Versions, as soon as is practicable.
MAC SYSTEM STORAGE HUGE NOT TIME MACHINE PORTABLE
One need not be using a portable to meet a situation where your TM drive becomes disconnected/inaccessible. The ability to do a local backup in the meantime, and the later a merge of local to legacy TM backups is a *godsend* in these and many other instances. No current TM backups in the meantime for several days as the workflow could not be interrupted. In another situation, multiple single-drive Macs were backing up to a Time Capsule (with additional external drives) and some of those TM backups became damaged/corrupt as compared to their source, and it was taking hours and hours per machine to both repair the host and the TM backup image on the TC. Without borrowing another external drive (with available space and partitions) they had *ZERO* TM backups for more than two weeks. In one case, the iMac (single internal HDD single partition) owner's external HDD for TM backups died, and they sent it off for warranty, as opposed to paying for a new replacement. There are certainly instances where this feature would have served my clients under Snow Leopard. Since the backup is local, you can do this even if you're not connected to your Time Machine drive.
If disaster does strike, you can simply enter Time Machine and restore the affected files or folders to their state at the time that you took the snapshot. This is a very useful (and prudent) thing to do immediately before embarking on some course of action that could have potentially disastrous results.
Once local backups are enabled, you can make a snapshot almost instantaneously by issuing this command: Local Time Machine backups should be enabled by default on portable Macs, but on desktop machines you'll have to enable them manually, in Terminal: You can make use of this feature to create snapshots of the current disk status, allowing you to recover instantly from disaster.
MAC SYSTEM STORAGE HUGE NOT TIME MACHINE MAC OS X
Mac OS X 10.7 includes a new facility to make Time Machine backups on the local disk.