George, I'm glad you are an inspector. You are reading the Code the same way I do.
I explain to contractors that downstream of what they did has to comply with the Code. If they change the service equipment then they have to add a lot of Code required items. Changing or adding an outlet at the end of a circuit, in my opinion doesn't require upgrading what is upstream of the work.
There are AFCI devices but the Code hasn't caught up to them , it would be nice to be able to add an AFCI receptacle as easily as a GFI receptacle.
Alan