But I thought the ground reference at the service entrance was, according to you, unreliable and could not be counted on.
Because the ground and neutral are still bonded at the service entrance, a hot-to-ground fault can still bring the ground lead to the pole up to some potential and harm a lineworker.
According to that scenario, nothing short of interrupting *all* *three* *wires* between house and pole will suffice.
Because I know that most commerical transfer switches don't do that - they only interrupt the two hot legs - I can only surmise that the particular failure mode you discuss is not an issue in the real world. If it were, then those transfer switches would not be code-legal.
Jim