In general, no inspector has the discretion to determine such things. As a practical matter, they often take it upon themselves to do so and no one wants to challenge it for fear of the inevitable retaliation.
The enabling legislation might give the AHJ the authority to determine what such language means, but it should not be done on a case by case basis, nor should it ever be determined by an inspector. For instance, the AHJ might determine that the word "near" in this paragraph means within 12 inches and publish that.
You would think that when the NEC uses phrases like "severe physical damage" that they would bother to define what it means.
Personally, I do not think that mere forklift traffic in an area equates to severe physical damage. If the people driving the forklifts are so unsafe that they are hitting walls and EMT or conduit on a wall, that is not really an electrical problem, and trying to solve it by beefing up the EMT to RMC is not the real answer.