Joe,
I agree with two possible exceptions:
1) The terminals were supplied with or factory installed in a "listed" device or piece of equipment.
2) I think it could be "approved" by the ahj if the circuit ampacity were limited to a value allowable for 500kcmil, and the lugs provided enough room to deform(squash) the conductors enough to ensure good mechanical contact. A definite judgement call.
Len
