NEC 310.15(B)(7) is intended for dwelling service sized per NEC 220 Load calcs.
If you dont like it, look for any required table adjustments, or load calc errors.
Any conduit on roof, >10% of raceway outdoors - subject to ambient > 30c, more than 3 ccc in raceway, or any pump/fan/motor loads they forgot to factor @ 1.25%. Any continuous loads not factored at 1.25% ?
the only thing i don't like is i cannot find where the NEC says what most people interpret (B)(7) to say.
i do not read it to allow 4/0 al on a calculated service load of 190, i only read it as providing only another minimum standard you must comply with, not as an exception allowing you to run wire over table 310.15(B)(16) when load calc is above the rating
i see it as adding a restriction to the code not an exeption or demand factor
i see it saying if you have a 200 amp service and a 50 amp calculated load you still can't run less than 4/0 al even if you only have a 5 space panel with 10 amp breakers
i'll keep looking in my spare time though, thanks for your time