The setbacks aren't 3' with my v2 roof, there are PV Modules as close as one full tile (~14" wide) horizontally from the roof edges or flashings/ridges, etc., and one row (~8" high) vertically (for example the full bottom row of tiles is non-producing, but the second row is mostly PV Modules). Now I still don't understand how the bigger tiles in v3 work w.r.t. the non-producing "tiles" (or whatever fills-in these spaces other than tiles, since there's supposed to be much less glass cutting with v3). Seems like the placement of the PV Modules (or whatever they're called now) must not be quite as flexible in v3 since they're bigger, but waiting to see any detailed shots/explanation of how v3 works or some actual installs.
Of course it's worth noting that setback requirements probably have some regional influence, that said I've heard lots of times that San Jose is one of the most conservative areas w.r.t. codes & inspections. At least they don't require separate AC disconnect boxes out here.