Re: generators
I believe that the code is simply recognizing the fact that a portable generator cannot be connected to a permanent ground rod. What would you have the owner do? Install a ground rod at every location to which the portable generator is moved, and then either dig it out again or abandon it in place?
The reason this is safe is that there are two requirements you must meet, in order to use the frame as the grounding electrode (i.e., not connected to planet Earth). 250.34(A) says that all loads must be either on the generator or supplied by cord & plug via receptacles on the generator. It also says that the ground pin of the receptacles on the generator must be bonded to the frame.
What do these two requirements accomplish? Suppose there is a fault from one hot conductor of a tool (i.e., one that is plugged into this generator) to the case of that tool. The fault current would flow from the case, along the cord?s EGC to the receptacle on the generator, to the frame, and finally back to the neutral of the generator (since it is bonded to the frame). This completes a fault path of low resistance, and the resulting high current will trip the generator breaker. If you are leaning against the frame, standing with muddy shoes on wet dirt, when the event happens, you will not be shocked. That is because the fault current is seeking a path back to its source, and planet Earth is not part of the path.