Man I love communities like this. I woke up this morning to find lot's of replies to my original question from last night. Thank you!
As an aside: already this site reminds me of the Airstream forum I used to belong to when we had our 1986 345. I could post a question and a pic and within hours had experienced answers from folks who've 'been there, done that and had the t-shirt'. It was like having a group of experts with you for every nut and bolt. Just awesome.
OK, so agreed that's unusual which is why I posted. In my opinion it doesn't DQ the boat but it has been a topic I've discussed at length with the surveyor and diesel mechanic to investigate. I've also been able to connect with a few other Bluewater 40 owners (again thanks to this amazing site) and learned that the forepeak was where the optional extra tankage would've been located (water and/or fuel) so perhaps this installation was a weight and balance decision. That said, no other owner I spoke with had their genny located outside of the ER.
In any case we're moving forward with the survey and will know more next week.