Maybe I'm not good enough at chess to understand the strategy here, but how would castling be useful in this 1-D game? Castling in a normal game protects your King and activates the Rook. In this 1-D game, your King starts out protected behind the Rook. If you castle and end up in a _ R K N position, your king is exposed and your Rook is trapped behind the King, useless, with no way to ever get it back out. The Rook seems essential for mate, and its power has been eliminated.

Exactly. Feels like R K N would be a more suitable initial position in which castling would swap the king into safety, provided it has not moved and is not in check...

Though maybe in that case the best first move for both is to castle and we are non the wiser (back to the original starting position)