Yes I have seen them work on the grid. I have actually done some myself. no they do not pull all the fuses on a line to work on the lines, they may pull the fuses where they are, but there could be hundreds of fuses on that line, that could take days to pull & replace. If they are working on a maintenance situation yes they do all that, if they are working an emergency power outage they may not. nobody here wants to stop you from feeding the grid, they just want you to understand that done incorrectly it is dangerous. You say you don't advocate doing anything illegal, but you said you tied your 3500 watt generator into the system without safties & shutdowns, & without speaking to the engineer at the utility, that's illegal, no doubt about it. the people here are "do-it-yourselfers", they take pride in that & when someone does something crazy it makes the rest of us look bad too. there have been many times on the forum where we have chastized people for running big flywheel slow speed engines past thier rated speed, that too is dangerous (cast iron will explode if spun too fast, like a bomb, with similar results).
when your system is tied to the grid & the grid goes down so will your system, in order to power your house, with the grid down, you will have to have a bypass designed into your grid tie to allow this, keeping your system isolated from the grid, while the grid is down.
good luck & be safe
Scott R.