So JABBARA asked a very good question.
If the time delay is modified to electronically displace the zero reading, actually this will generate a
circle of zero reading, around the antenna.
And that's the point.
Of course, when the airplane is aligned, or almost aligned with the ILS, that's not a problem, but if approacing from a side, like in a long base turn, let's say, the airplane will think he's closer to the runway than actually is...
Isn't it why sometimes the map display is shifted during the approach?
Isn't it why, on FMCs without GPS, it is forbidden (or should be forbidden) to intercept the Localizer on LNAV?
The airplane could just fly a parallel virtual LOC and never really capture the real thing...
Anyway, I will never bother to inhibit some DMEs before the approach
Just select Heading mode for localizer interception.