A. - yes - it does
B. - Real my last - No - Dropbox is not a local device, its a remote service that someone has put window dressing on so it masquerades as part of your file system.
You are welcome to try anything you want, its a free world, and the software is free. That being said, none of it alters the underlying facts.
I am only giving you a realistic assessment, based on my knowledge.
Drop a line to Steve Jobs and the developers of Apache, MySQL & Dropbox, because those are your contraints - they are not constraints created by JonB or the packagers or XAMPP, these are underlying architectural issues. Just like why XAMPP won't run on iPads (why ever would you want to do that?) nor AppleTV2 - wrong processor. I answered those questions too. The problem is that the Apple architecture is not designed for innovation, other than innovation where Apple gets its byte. (ask any mobile device developer about how much Apple gets of their revenure - its obscene)
At this point I have explained way more than needed. Dropbox, Apple TV and Ipads are NOT supported architectures. XAMPP is a free disribution of components designed by other organizations.
Finally - remote connections are how most everything works, trust me, underlying Dropbox is a remote connection - you just don't see it.