I don't have a problem with this. As was pointed out, risers are frequently places within wall cavities. They almost always pass throgh the attic space for part of their run. On older homes, the meter/fuse box is often set into a cabinet that was built into the wall at the time of construction; the riser then is in the wall.
On the brighter side, too often I see exposed risers with questionable attachment to the side of the building- as well as other things attached to them!
FWIW, a subdivision around here is rewuiring services to be flush with the face of the wall; everything is inside the wall.
They want to hide the pipe, I say OK.
