Yep. There's no deep check of what your code contains, only a fairly superficial check of what it actually does. You can include nearly anything in your app (perhaps lightly obfuscated) as long as it doesn't show its face during the review.
Depends on your level of paranoia and willingness to rely on the network. The server has the advantage of letting you turn it on and off at will, but a timer will work even if the user has no internet connection or your server gets confiscated by the FBI.