I wouldn't classify it as a bug, more like an attempt to make sure people don't shoot themselves in the foot too badly. Ok, just one security restriction more. But I think a LocalFS and its subfolders (LocalDirectories) should be also considered as ObjectManagers.
You should be able to go into the LocalFS sources and ensure that those "folder wrapper" objects do set an attribute "isAnObjectManager". I have already done it, but you have also to mention that you have to create the LocalFS objects again, so that they store the new attribute.
For the interested, this is what I did: 1) In LocalFS.py: Add "self.isAnObjectManager=1" to the __init__ methods of the classes LocalDirectory and LocalFS. 2) Delete your LocalFS object and create it again. I guess you can also solve this by adding a __setstate__ method to both classes, then add the new attribute there; or you can also create a script that search for all the LocalFS objects and add this attribute but I preffer the first solution, for I don't have many LocalFS objects. Thanks, Josef