Well, there's that nasty violation of 300.20(A). I used to dread pointing these out, when I was 30, looked 22, and the offending party was nearly always over 50. They invariably were instantly convinced I was wet behind the ears, and talking out you-know-what.
When I was 29, I arrived on a jobsite one morning and waited for the foreman to show up. When he did, he saw me looking at a thoroughly toasted 800A pole-mount breaker. I wasn't really thinking of what I was seeing until he asked me if I could identify the problem. I noticed the 2" hole melted in the side of a rigid conduit, and then I noticed the phase taping on the drip loops.
Now I'm 39 and I still look young, but with enough lines in my face that I'm not instantly dismissed out of hand when I bring something up. It is true that there is no substitute for experience, but experience alone produces know-it-alls who ossify in their ignorance as they age.
But that's an aside. This guy lacks experience as surely as he lacks a knockout set. True, he seems to grasp the concept of the "water letr' outer" (though that may just be accidental), and he remembered the duct seal for the top of the meter can (if that's really what that is), but if you're going to go that far, why not rebuild the whole service with a transfer switch?
Oh yeah, and I think I see a meticulously-taped split-bolt neutral splice. I don't see a bonding jumper. That breaker disconnect is on the line side of the meter, but ungrounded, except maybe by the romex connector gripping the bare neutral.
It looks to me like an old SE cable running up the right side, cut. Additionally I can't imagine any utility company ever making thos connections, for several reasons. (a)The wire is not only within the required 3' of clearance, its right in front of an operable window. (b) the "new" SE cable is floating in mid air, with no weatherhead.and lastly the poorly made or not made drip loop. water will rundirectly down the conductors into the jacket of the SE cable, then into this handy, but not legal disconnect.I'm sure I'm missing a bunch more,but those are just the obvios things. additionally I'd be willing to bet this thing is about 6-8' off grade. Hopefully this place burns down(while no one is home) AND REMEMBER, electrical work is easy.....
Asbestos!?-- Bet ya the fire gets them first.(gentlemans bet)
As Far as the other comments.. So TRue. But do you think they care? My advice. If ever asked to work on a system as this...DON"T. Unless authorized to repair/replace the existing. Spell it all out VERY carefully.