I am definitely on the side of AFCI breakers only. A device only protects downstream of the cord plugged into it but does nothing for the drywall screw between the panel and the Device. If the device had to be within 3 feet of the panel I suppose I'd be OK with that since it is likely that 3 feet of wire might be visible always. I took to the hype of AFCI pretty quickly since it was a promise to prevent the very kind of electrically caused fires I was investigating. None of the fires I would attribute to a series arc had a problem outside of the walls but always in concealed wiring or in a box with a device. We have been installing AFCI breakers for 8 years and except for a couple of bad breakers the first year or so almost all the problems I have found were errors or faults. Most problems were bonding wires touching neutrals. I heard of a case where the inspector and contractor almost came to blows arguing that the branch wiring was fine and the breaker was the problem. It took 2 breaker changes and some jury rigging with another manufacturers breaker to prove the problem was repeatable. Eventually the nail was found and the section of damaged wire replaced. So my experience supports AFCI technology and I am a convert, Regardless of those experiences I did see a lot of crazy demonstrations using a razor blade and a section of loomex. The demonstrator would use a makeshift guillotine and slice across a piece of loomex. the AFCI would trip and the branch circuit supplying the demonstration gear would not. It was a few years later I discovered the AFCI was tripping on parallel fault using the Ground fault protection. Pure BS and marketing by the salesman yet the breakers were tripping as per the claims of the manufacturers on series faults. It seems there are not enough sparks to make a good demonstration on a series arc.
I expect there is a time coming soon where all branch circuits are AFCI protected in residential applications since by far that is where people are dying. Most of the people dying in house fires are asleep or otherwise unconscious when the fire starts. I would feel a lot more confident that when it comes time to impliment that change that I couls rely on the sales pitch. Unfortunately salesmen tend to push what ever sells regardless of it meeting the claims. It is darn difficult to be a cynic and an optimist at the same time.