Local multiplayer like two people on one PC? Maybe i get you wrong but as I understand it that wouldnt really work. You would need 2 input devices and a strong computer. At least a high end GPU. They would need to write a driver or something which manages the input devices correctly. And i havnt seen yet any PC used by 2 people at the same time. At the end the usability of this wouldnt be really great.
Nah, just using 2 clients connected to each other in windowed mode, so you can play both characters. This wouldn't need any special support in the game (aside from allowing the launching of two clients.
Of course, the feasibility of this option depends on how taxing on the hardware D:OS is.