That depends on how big your display tank is versus the remote DSB. If your display tank has heavy bioload and fully stocked 55G, you can't expect a 10Gal DSB tank to reduce nitrate developed from the display tank.
If the display tank footprint is about the same as the remote, then IMHO it should be OK. If your display tank is 70G, I would go with at least 40Gal tank as DSB/refugium
I think it would probably do better remotely. No fish predators to eat your sandbed fauna. You can also use a low, large surface area container to put it in. You may want to feed the DSB since it won't be getting as many leftover food particles as it might in the main tank.
The argument I've seen Ron Shimek make is that the remote DSB won't get enough food. He also points out that having it somewhere other than the main tank where you'd (according to him) have to feed it would be counter productive as one of the main points of it is for nutrient export (and with these additional feedings you'd be adding more nutrients to the system).
Personally, I think it would work provided you have lots of circulation in the display tank. That should help keep uneaten food and detritus suspended so that (at least some of) it eventually makes it to the sump/remote DSB.