Thanks for the posting. This a real mind bender of an issue.
I had spotted this on MSDN but didn't fell I understood it.
It's one of those situations where you have to accept the description even if you don't understand why - if you know what I mean.
I see that you have to take condition a) and b) together to make it sound sensible. I think I was looking at them as independent conditions which was confusing me in a big way.
Therefore....( my brain hurts ) you are suggesting
the join type is not in any way influenced by the REMOTE
and the join work will actually take place on the remote server and yield the same results but with a different timescale - dependent on the comparative server power etc.
This would explain why the table on the remote server should have more rows ( that really confused me before ). But if the processing were done on the remote server it would make sense you want to import as few rows as possible from the local server.
Soooooo in essense the 'REMOTE' hint on a join makes your local server the remote server from the queries point of view. The query is passed to the remote server which does the work and pulls anything it needs from our local server!!
It sounds a good explanation.

)
Dazed and confused
(N+, MCAD)