Not sure because I never tested it. I have a hunch it won't but if you want try it out and let me know.
Okay, after quite a bit of flashing/rebooting, and various tests, I can confirm that this DOES INDEED fix the CM USB desktop mount issue. Instead of USB mounting making the internal storage available to the OS of the host computer, it instead makes the external SD card available. AWESOME SAUCE!!!
So, just for those that may be curious (and to show the lengths I went to to see how this mod changes the filesystem), I've listed below all of the conditions I looked at before and after flashing this mod.
I used two OSs on the phone (Stock with Goodies v2.03, just as something to compare CM to, knowing that it isn't affected by this mod; and CM10 nightly from 9/06). Also, on the host side, I used all three major OSs (Mac, Lin, Win), just to verify that the USB storage mounts I experienced weren't flukes.
I know that a lot of this is really redundant, as most of these locations are linked and such, but I included everything just for completeness.
And here it is…
Filesystem Mounts:
Stock203 (via TWRP)
---------------------------------------------------------------
sdcard/ internal
sdcard2/ external
sd-ext/ nothing (empty)
Stock203 (via Terminal Emulator)
---------------------------------------------------------------
/mnt/usb/ nothing (empty)
/mnt/sdcard/ internal
/mnt/sdcard/ext-sd/ external
/sdcard internal
/sdcard2 external
---------------------------------------------------------------
---------------------------------------------------------------
PREMOD
CM10 (via TWRP)
---------------------------------------------------------------
/sd-ext/ nothing (empty)
/sdcard/ internal
/sdcard/ext_sd/ nothing (empty)
/sdcard2/ external
---------------------------------------------------------------
CM10 (via Terminal Emulator)
---------------------------------------------------------------
/external_sd/ external
/sdcard/ internal
/mnt/external_sd/ external
/mnt/sdcard/ internal
/mnt/sdcard/ext_sd/ nothing (empty)
/storage/sdcard0/ internal
/storage/sdcard0/ext_sd/ nothing (empty)
/storage/sdcard1/ external
Titanium Backup
* SD Card (mapped to internal)
* Ext SD card (mapped to external)
USB mount to desktop
*
Internal storage
---------------------------------------------------------------
---------------------------------------------------------------
POSTMOD
CM10 (via Terminal Emulator)
---------------------------------------------------------------
/internal_sd/ internal
/mnt/internal_sd/ internal
/mnt/internal_sd/ext_sd/ nothing (empty)
/mnt/sdcard/ external
/sdcard/ external
/storage/sdcard0/ external
/storage/sdcard1/ internal
/storage/sdcard1/ext_sd/ nothing (empty)
Titanium backup
* SD Card (mapped to external)
* Ext SD card (mapped to internal)
USB mount to desktop
*
External storage
---------------------------------------------------------------
---------------------------------------------------------------
EDIT: And of course, all of my spacing is removed... This really should be WYSIWYG.