The inspector is thinking about the breakers in your service panel.
There will be X-amount of fault current available to circuit breakers from the source supplying those breakers. As one moves further downstream from the source, the available fault current will become less as there is more impedance added to the circuit.
Some of the newer (larger homes) by us have their own transformers, closer to the home and lower impedances available. For some of those homes, I am in question of the available fault current available.
Last week, looked at a 3-phase, 1200 amp service to a home...that is no small service. Transformer pad is about 15 feet from the corner of the house, and the service disco is directly on the inside of the wall.