I'll preface this with the caveat that the difference between the National Electrical Code and the Bible, is the code has started more arguments, fights and wars over its interpretation and enforcement. /winkyface
The code wants there to be space to install the panel, access the panel, and work on the panel. The dedicated equipment space is for installation of the panel and related conduits. If you ran a water line or something under the panel, there may or may not be room to go back and add something later, and then brother-in-law "there I fixed it" workmanship comes into play. You also don't want something dripping, leaking, etc., onto the panel.
Quote:
The space equal to the width and depth of the equipment, and extending from grade to a height of 1.8m (6 ft) above the equipment, shall be dedicated to the electrical installation. No piping or other equipment foreign to the electrical installation shall be located in this zone.
The trick is defining what is or is not foreign to the install. Some might only consider conduit, strut, ground rods or the like as related to the installation. Other inspectors might be perfectly fine with considering a receptacle as part of the electrical installation. If you had a recessed panel inside the house, the dedicated equipment space would technically be inside the wall (still above and below the panel), and your working clearance would start at the face of the wall.
The 6'6" height requirement is pretty common throughout the code. It wants to make sure the average person can reach up and turn it off, unplug, etc.
And if you want to start a really good fight, ask three electricians if a receptacle should be installed ground pin up or down. Brisket fat ain't got nothing on ground pins.