That is what I think he has Geoff. It can be used for the whole house by just not hooking anything to the 16 circuit panel though you may want to connect you most critcal circuits to that section in case it does shed. Ican't understand using that switch with a 36KW generator unless there are some extreme loads in the main panel.
Agreed. Sure seems like that switch would not be necessary with a 36kw feeding a 200a panel.