I guess what we disagree on is the genset surging. We know a power surge at the pedestal can happen for a lot of reasons including lightning and storms. I see it as I have a 99% chance of a surge coming from the pedestal vs. a 1% chance of the surge coming from the genset.
Furthermore you guys are talking about the transfer switch possibly being damaged, what's stopping the surge from damaging the genset itself if the protection is after the transfer switch?
My rig spends 99% of its life connected to the pedestal and very little time on genset power. Genset surges are possible but extremely rare. Genset have there own circuitry to avoid surges.
Nevertheless we each can decide for ourselves. I'll place the protection where I believe the potential problem is and take my chances on a remote genset surge. Especially if that means exposing the genset to surges from the pedestal.