I don't understand why this was done. With nearly the same amount of effort, the proper sized conductors could have been installed. Never mind what I would consider a poor job of landing the poco conductors on the line side of the meter.
Two things I observe about the load conductors from the main disco/sub panel to the panel somewhere inside the house; 1) The neutral conductor is way too short to reach the buss at the top of the panel and would have to be spliced, and 2) the three conductors (red, black and bare) don't appear to pass through any kind of conduit fitting, or even a clamp of some sort. Please correct me if I am wrong, but isn't there supposed to also be a separate grounding conductor from this main/sub panel to the panel inside?
I have seen numerous panels like this in my part of the world, primarily for mobile home service poles, where the main conductors to the home land in those bottom lugs, and another couple of breakers are supplied for such purposes as a water well pump, outbuildings, etc.
Mike (mamills)