Not sure who's the cheapskate?
Thought you bailed?
I don't think anyone is taking the chance of shocking someone lightly.
All I know is, the lineman himself, who I spoke with personally, indicated he's wired his own home to backflush the panel. Doesn't make it right, just means that some, including lineman, wire it that way.
He used, what he refered to as a lightning stick to test the line, he told me, if he could see that it was hot as a result of someone not throwing their main, he'd ask them to shut down the gen, if they refused, which he said on occassion some have, he fries the generator (not sure exactly how, but sounded like he could do it from the pole).
I don't think there is any doubt that a three way set up or transfer switch panel is the best to ensure both main and gen are not on at the same time.
Joel