Simply cutting the wires to create a drip loop doesn't gain him any ground.
He already has a drip loop.
To mess with the existing service would entail much more than an added $20.00
To change this out to a combo meter main (which isn't cheap in the first place) he would have to call the power company for a disconnect, replace the wiring up the mast, purchase and install a combo metermain, re terminate it, call for inspection, then have the power company reconnect.
He already has a Main, and, a 3r MLO Loadcenter as he's contemplating is probably the cheapest and easiest way to accomplish what he wants to do.
It's his house anyway, so, he can do as little or as much as he wants to.
JAP>