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Let me throw this out there regarding the matter that prompted your poll. The actual requirement is "inside nearest the point of entrance". The Code does not define inside versus outside, TTBOMK. Structurally, any point to the inner side of a structure's exterior surface is inside. Personel-wise, inside is any point to the inner side of the outermost structural barrier's inner surface. My personel interpretation of inside appears to correspond with Webster's Collegiate Dictionary, which I believe is the recommended reference for undefined NEC terms. Going by such definition, service conductors within an outside wall are not inside the structure. Additionally, having no part on the inside, they have yet to enter the structure so there is yet to be a point of entrance.
I like it, but don't think the NEC needs to define inside versus outside. "Inside", as used in that section, simply describes the location of the disconnect, not the conductors. The disconnect does not need to be installed within the exterior wall to comply. Your definition of "inside" can stand, though we might be better served to define "entrance".
Now we all know how hard it is to make reality fit words, and we can pick apart most sections to show that they do not require what we think. We can mount a disconnect within inches of the point the conductors emerge into the 'inside' of the building and we have compled with 230.70(A)(1). If we then run the wire around the whole basement, say to lower the fault current, we have still complied with the letter of the book, as far as I know.
That said, I read it as limiting the distance inside to as short as reasonably possible, and voted that way.