Yes, I've read the same Code section you all are reading. How is Generac selling these :
http://www.electricgeneratorsdirect.com/Generac-Guardian-6051-Standby-Generator/p6952.html ? If, in fact, you are all correct in your interpretations then I will go out on a limb here and say that there are literally 100's of thousands of generators out there with whole house ATS's that are improperly sized, have passed all inspections and are working just fine. If you have high amperage, automatic draw items like AC units, a spa tub or a swimming pool they need to be connected to the load management system via relays or contactors. If those loads draw an excessive amount of current the load mgmt. system will not start them. IMHO, if you have a 10 kw generator hooked up to your 200 amp service and you're stupid enough to turn on your double wall oven during an outage then you deserve to have your generator crap out or burn up the alternator as Hurk pointed out. On the subject of "connected load", are you required to size the generator with the possibility of every appliance running at the same time ? Maybe Hugh Hefner would at his mansion.
According to what you are all suggesting, the only proper way to install a gen-set is to use an "essential circuits" system where there are selected loads wired into a sub-panel with the ATS built in. In most cases this is my preferred method however, there are instances where it is impractical and a whole house system has to be installed. BTW, if you look at a Generac 12 circuit transfer panel
http://www.electricgeneratorsdirect.com/Generac-Guardian-6437-Standby-Generator/p10690.html coupled with a 10 KW unit it comes with (5) sp-15's, (3) s/p 20's, (1) 2-p 30 and (1) 2-p 40. This is a UL listed panel. What do they expect you to connect to this with a 10 KW generator with a 45 amp breaker ? FWIW, I usually change out the 2- pole breakers and re-install the breakers I want. Did I void the UL listing ?