Regardless of what you or I think, one suing an inspector would have to overcome his testimony that *he* thinks it is, or can become, dangerous. THAT was the point.
Regarding whether it's begging for an overload or not: If you don't see the expansion of 1 receptacle to 11 via cord and plug connected daisy chained power strips as begging for n overload... well, what can I say. I guess we're not sharing the same common usage of the words. :-) I do note however, that your example below is the installation of 4 duplex receptacles, each connected directly to the branch circuit and housed in a junction box. So the total current drawn is not forced to pass through a single cord and plug.
A completely different setup than 11 receptacles, in two daisy chained power strips are powered through 1 receptacle. Are you aware that the NEC requires that any single load on a branch be limited to no more than 80% of the branch circuit rating? Table 210.21(B)(2) 2005 NEC
The receptacle "sees" the combined load of the 11 receptacles in the strips as a single load. With a single receptacle supplying one UL listed cord and plug connected device, the rating on the device takes care of that. If it is listed for use on a 15A branch circuit, it will be rated at no more than 12 amps. However, when you use a power strip, you can exceed the 12 amps, without tripping either the 15A breaker in the service panel, or the 15A breaker in the strip (if so equipped). For example, one could plug two 7 amp devices into a strip. Using two daisy chained power strips exacerbates the situation.
Using a power strip is a situation that easily allows going beyond the limit specified in the NEC. Daisy chaining makes exceeding the allowable load even easier. That violation can't happen on the bench setup you described, unless the user ignores the ratings on the devices he uses. But it can, and does happen on power strips, even when no single device is beyond the limit.
Ed