No, on the remote machine the command emacs is to /usr/local/bin/emacs.
I read the emacs man pages which came with the Tiger and they mention:
Using Emacs with X
Emacs has been tailored to work well with the X window system. If you
run Emacs from under X windows, it will create its own X window to dis-
play in. You will probably want to start the editor as a background
process so that you can continue using your original window.
Also on a regular linux machine when I run emacs a new window appears.
By the way, this also happens with vim when I run it in X11 locally - a new window doesn't pop up, instead it opens inside of the terminal.