SSDT Deployment – Can It Deploy SQL Server Service Broker Objects?

The way you run ssbdiagnose in the post it would connect to the database MyDatabase on localhost and search for the initiator and target service. You mention that you've set up for two different instances, so the correct command line should be something like:

ssbdiagnose CONFIGURATION\
  FROM SERVICE /test/initiator -E -S <instance1> -d <db1>\
  TO SERVICE /test/target -E -S <instance2> -d <db2>

(I used the unix style command line terminators to prettify the code. You should use a single line).

When the connection params are pulled out ahead of the CONFIGURATION keyword they apply to every connection (FROM, TO).

From what I understand the limitation only applies when you attempt to send messages outside of the instance. Sending messages within the same instance is not limited by using Express. See the last reply in the following link:

http://social.msdn.microsoft.com/Forums/en-US/sqlservicebroker/thread/3b03a610-8159-4be8-b2d8-e2abb4ba1225

I hope this helps you.