I agree the code as written is confusing. 110.14(C)(1) states "unless the equipment is listed and marked ... conductor ampacities shall be based on Table 310.16 as ... modified by 310.12." 110.14(C) is intended to specify temperature limitations when selecting conductor ampacities, as I read it in order to protect against exceeding rated terminal limits. It really should have nothing to do with the sizing of the conductor, which is addressed in 310. Yet it directly references Table 310.16 which specifies ampacities for a specific situation, which is conductors in conduit or in a cable. I don't think it is about Electricians trying to squeeze more ampacity out, but there are applications where we have single conductors in free air, and that should use Table 310.17, not 310.16.
It is common in Solar PV and battery storage systems to use single conductors in free air, and maybe also other applications. The 75C ampacity of 1AWG copper with 3 CC in conduit from Table 310.16 is 130A, while in 310.17 it is 195A. We should be able to use 195A when using single conductors in free air, don't you agree?
It seems that 110.14(C)(1) could instead just reference conductor ampacities per 310, and not specifically reference Table 310.16, and that would allow the use of Table 310.17 for appropriate instances.