Well, there are a couple of things that need explaining...

In coarse terms, it is said that arguing with an inspector can be like wrestling a pig in mud.... sure, you get all sweaty and worked up, but eventually you learn that the pig likes it!

The NEC does not define everything. It is not intended as an instruction manual, or to be applied without a prior education in the trade. Just to make things even more interesting, designers simply delight in makng thing different, in ways that make code application a real challenge!

There's a reason the inspector is called the "Authority having jurisdiction." It's his call to make.
Sure, there is sure to be a way to dispute him, have his decision examined. Or, you can even put an AFCI in, then remove it when he leaves. (Edited to add: I am NOT suggesting you do this fraudlent act- just recognising what can happen in 'the real world!)(Thx for letting me know I was not clear here, George!) Just how much time and effort are you willing to invest in disputing a $30 breaker?

Personally, I tend to agree with you- but I've got better things to do than argue over such a small thing.

[This message has been edited by renosteinke (edited 09-14-2006).]