The speaker shown on the right would be remote from the speaker on the left as this is an amplifier for an intercom.
The feedback shown looks a lot like the constant current regulator you showed some time back, Bob.
I simulated it and it seemed to mostly control the DC behaviour of the opamp.
I would like to see the complete circuit, but something like the following could be worth trying:
[PLAIN]http://dl.dropbox.com/u/4222062/intercom.PNG
Here, there is an amplifier and one speaker at each end.
Both speakers are connected to the line and no power is drawn from the battery supply.
When the switch at one end is pushed, power is applied to the amplifier and the local speaker functions as a microphone. The speaker at the other end stiil acts as a speaker and the transmission from the other end is heard.
Because the speakers are in parallel, there is a chance that loud sounds near one speaker would be heard in the other speaker.
However, there would be a big advantage in such a circuit. No power would be used on standby and this would be good for battery operated intercoms.