I read the blog about calculation geodesic distance:
http://blogs.esri.com/Dev/blogs/geoprocessing/archive/2011/07/21/Calculating_5F00_Geodesic.aspxwhere it seems that the projected distance is always returned.
Why would anybody want that? Shouldn't it be the other way around. Always return the "real" distance on the ground and if you want something special, return a distance in a selected projected system.
(I can see in the blog that you might be working in that direction so keep up the good work.)