It won't make a difference in this example, but 250.66 isn't based on the the size of the service lateral conductors. It is based on the size of the service entrance conductors. If there is no disconnect at the meter, then the two sets of 3/0 conductors from the meter to the panels would be the service entrance conductors. This would be a case where footnote 1 to the table would apply. The sum of the areas of two 3/0 conductors would be 335.6 kcmil. This produces the same answer from table 250.66 as would a 350 kcmil conductor. There could be scenarios where you could get a different result by using the size of the service lateral conductors vs. the size of the service entrance conductors.