Joey, If you can't stand in front of that panel with nothing in your way you will have to move it. I've done many like that and its included in the quote. I also explain it to the customer (both verbally and on the quote) so that when the guy that changes services without changing the meter socket or taking a permit out comes along at least the customer might challenge them as to relocating the panel. If that water meter is anywhere in the 30 X 36 space the inspector is right and should be respected for the fact that he is one that is doing his job. He is not being unreasonable. Ever work in front of a panel with a small obstruction in front of it and back up to trip over it? First thing you do is grab out in front of you to get your balance. Try to get the customer to pay some extra for it to be moved because the inspector requires it. Most people will understand. Good luck.
Ron