Sparky,

Tha AHJ concern is GFCI protection, not loading. Remember that this is a safety inspection for a real estate transfer. They also insist on installing a ground rod if none exists, and all current GFCI location requirements. Not a bad idea, in all. However I cringe to think about them getting involved in proper design, retro-actively!! As far as GFI breaker, I agree, but, interestingly enough, the most recent job involved a (here we go) Federal Pacific panel that was about 45 years old. This was overlooked until I recommended replacement. So much for Twp. AHJ.