More feedback = more valuable. Regarding an automatic transfer, I wasn't thinking of a generator that would come on automatically, but a device that would automatically switch the panels from incoming grid juice to gen juice when the generator is started up with a pull cord. This isn't the first time I have imagined devices that don't exist.
The concept of a manual transfer switch is most appealing. IMHO manual anything is almost always better than automatic. The comment that my system appears to backfeed the grid may be enough proof that it has never been used. The observation that the well pump is all that is truly necessary is spot on, but maybe add the refrig.
Your first post didn't have pictures and I assumed (dangerous, I know, and proved here) that there was a transfer switch. I assumed this because of the extra panel. I have a similar panel, made by Generac, but it has a transfer switch. For the panel I have there were apparently two options, manual switching or automatic switching. I bought my panel second hand. It was unused and set up for automatic switching but lacked some control components so I wired the switching solenoid for manual control. In any case the way my setup works there is no chance of backfeeding. There is also no way the utility power can enter my panel unless the generator is disconnected. In fact, once utility power is present the panel automatically switches from the generator back to the utility. This removes the generator from the circuit and the generator cannot be connected again unless a human actually actuates a switch. So both the folks working on the lines and myself are protected,
But from your pictures it looks to me as if there is no switching protection. As near as I can tell from your pictures you need one of some sort. There are available several schemes that allow power to come from either the utility or the generator, but never both. Some are purely mechanical, and may be your best option. They are certainly the least expensive and are widely available.
You do not want one that connects your generator as soon as you pull the start cord. The generator should be running at the proper RPM and warmed up enough to not lose significant RPM once connected to the load. Some generators, mostly the cheaper ones, can lose their ability to self magnetize and so do not produce the proper voltage and amperage if started when under too much load. I'm tired right now and don't feel like explaining why this happens and how to overcome this problem if it happens. But it can be avoided simply by starting the generator and letting it warm up for a little bit until it is off of the choke and running at the proper RPM. Usually less than one minute. I'm talking pull start gasoline generators, not propane or diesel generators.
And even though the wiring in the main panel is a mess I would still leave it alone unless you are sure you can clean it up without adding any length to any wires. You should be very confident in your ability to do a better job. Lots of folks use wire nuts the wrong way, especially when connecting stranded wire to solid wire. I know, it seems simple, anybody can do it. But lots of folks make connections with wire nuts that fail. Many time they fail hot. And cause fires.
If you do decide to clean your panel up and find out you need a longer wire then do not use a short length of wire and another wire nut to make the wire longer. Instead replace the whole length of wire with one the proper length. This will require pulling wire from one panel to the other and will take some extra time as well as possibly buying some wire.
Cheers,
Eric