1.8 miles? How can you justify that? I was under the impression that one of the ideas of flying a circuit as such was to be within easy gliding range of the runway for the longest possible time when close to the ground. I know that C210 (in all honesty, one of the most likely candidates for most brand new cpl students to move into when lucky enough to score their first job), uses somewhere around a mile of distance (nil wind) to descend around a thousand feet in a straight line. If it is heavy, the best glide speed goes up by up to ten knots. You don't need to be Einstien (spl) to work out that while a close circuit can be difficult for a student to manage in terms of speed and engine control, wouldn't it pose more of a challenge and the end result being a student "more on the ball" than the student who just drags it in from miles away (possibly citing the 3 deg ILS descent profile as the reason)? You want to teach that, then do it when the student does their CIR.
Bear the "recent" fuel starvation/exhaustion accidents (where a couple of charter a/c lost power in their respective circuits), in mind. At 1.8 miles you are having an off-airport landing in a single engine, no question. Can you afford that, mr instructor? You are, after all, the PIC!
You own the wreckage if you are proved neglegent (contributary), by not flying in such a way as to be able to avoid damage to the aircraft if avoidable.