Have you checked to see if the 1/2 space breakers are available for your panel? Two
of those can quickly open up the needed double space.

I have used those in my previous house when I upgraded our service to 200A It is certainly an option and possibly easier than the alternatives. I am considering a sub or breakout panel though, containing just the items I would want on the generator. Choices...

To me, the current transfer switch you already have looks good (excepting of course the flimsy wires feeding into the bottom from the generator). It does certainly allow you to 'overload' the generator, by turning on too many appliances/loads in the house, but it has the great feature of allowing you to use any outlet in the whole house at will. Is it the risk of overloading the generator that bothers you?

As I understand it it’s legal to have a wire nut splice in the main panel which may be necessary when moving wires to a new breaker location. I had to splice one circuit in my panel when I decided to add a surge protector which looks like a double breaker and takes a double space.

Idle curiosity, the purchase inspection or Building Department inspection? I know that we had a few things which eluded purchase inspector which LADBS made us change out with a mild WTF.

I'm not happy with the existing 30A Gen feed wires or the receptacle itself so will definitely be replacing both with a new 50A.
The rest of it DOES have certain advantages, providing I am mindful of what I am doing and use relevant breakers accordingly. As you say though, it would be possible to overload. You should really have all breakers OFF before switching anyhow, and then turn on the ones needed. To be honest, my main interest is the well pump and the barn (horses).

Purchase 3 years ago and also Electrical inspection last year I suspect whilst it is ok as existing, it would probably not be on a new build, though I could be wrong.

To be legal by today’s code it needs a 50 amp breaker before or at the main panel. In that way if you accidentally overload the generator the 50 amp #6 or #8 wire is protected. Otherwise it is only protected by the 200 amp main breaker which is no protection at all.

Makes perfect sense and something i will need to, address. For piece of mind if nothing else.

You can buy a small box that is used for the required cutoff for AC units. Using a 50 amp breaker as the cutoff would work. They are weather proof as they go on outside wall near AC unit. This is next to my heat pump outside unit.

You

I can imagine 'not realizing' (not planning ahead) for what things I do and do not 'provide for'. That lamp by the bedside, that socket that feeds the wifi router, that light switch under the stairs, etc. Being a nerd, I spent a whole day early in my tenure in my new place tracing every single wall socket and light switch to a breaker in the breaker panel (more than 20 in all!) so I would know what is what, but many don't do that and thus don't have a clue what breakers operate what devices.

Yes, that would fit in very nicely as a replacement for the rusty old piece of crap I want to pull out. It would also probably be enough of a solution that I could not make other changes right away.

That would work perfect. Box with new receptacle, box with breaker above, connected by weather proof conduit.

Yes, I think you have nailed it. Seems like a perfect solution, given what I have to work with.

Nutek
I think this is what you would need to install a breaker that would also serve as a outside generator power cutoff switch. From description it will take up to a 100 amp square D breaker. I like square D and have used nothing else. They make a QO line and recently a cheaper homeline. I always use the QO.