Around here, "nearest" was so loosely interpreted that unfused service conductors often ran up a wall, across the ceiling, and down another wall before coming to your first disconnect at the panel. Probably an average of 20-ft. of unfused SER in the house.
Funny thing is, the NEC still is unable to better define things - though Chicago had no trouble covering the matter in detail, even in the 50's. Chicago said: Put it in pipe, no more than six feet, panel must be on same wall.
In both Reno and NE Arkansas, local rules require an outside disconnect. Reno has it in their 'fire code,' while here it's a local amendment.
Me? I'll put in the outside disco. It's not a negotiable point. Just because you 'can' do something doesn't mean you should.
