Quality ABboth switches are not bad news. The human error factor is the bad news.
Only when approaching their load limits with undersized wire will a quality switch present problems, and it will need a huge or multiple alternators and a huge depleted battery bank to reveal issues with them.
I've been using them for 13 years without a single issue. the first one did start wearing out after 12 years and about 5000 switchings under load, which is acceptable. My newer switches are rated for 150 more amps ( if properly cabled) and more cycles than the one which was worn but still fully functional.
If such a manual AB switch is employed just for the main isolator device, meaning no isolator or solenoid oR ACR, then the Solar controller could be wired directly to the battery 2 stud. When the switch is on battery 1( engine) the solar feeds only the house battery(2), and the two batteries are separated. When switched to BOTH, then solar current is shared between both batteries and both batteries see alternator current or starter loads, charge and discharge together. When switch is turned to battery 2 solar goes only to battery 2, engine starts from battery 2, all alternator current goes to battery 2, and battery one is completely isolated from everything not wired directly to it .
Lots of room for human error, if this makes it bad news, then so be it, but the products themselves, properly employed are themselves not bad news, and the un-forgetful and aware, should not fear them.
Everybody else can run for the hills in the presence of one.
Bob, in your diagram, basically add the alternator/starter to the solar controller side of the battery switch, and that is how my system was set up for the first 13 years.
Know how many times i ran both my batteries so low it could not start the engine? Zero
Know how many times I turned the switch to off with the engine running, and destroyed my alternator?
Zero.
I had failed alternators, but only because they were remanufactured junk that could not handle charging such depleted batteries.
I've not had an alternator issue since getting solar. but watch it explode tomorrow
Murphy was an optimist.