Really agree with the emphasis changing from regulatory to advisory- rather like the LA advisory teams that used to exist but have now largely disappeared.
One of the difficulties, in my view, is that an inspector can write about 30 pages of notes whilst they're carrying out the inspection but nobody (apart from Ofsted) ever get to see these. I talk from experience when I inspected during the Tribal contract years. In these notes, I'd include all the wonderful things I saw- what made that setting unique and how much learning the children were engaging with. I'd quote verbatim from staff and children and really paint as accurate a picture as I could, of my day in the setting. I'd also detail any problems and areas for improvement, as evidence for the final judgements, actions and recommendations, etc.
The problem comes after this- the inspector then has to use those notes to create a very short, dry inspection report- one that could be about virtually any other setting. All the nuance has gone and the inspector can only select from a limited number of phrases- if you've read lots of reports, you'll know what I mean! If only those notes could be made into a lengthier, accurate picture of the setting, ending with a few actions/recommendations. No one-word judgements.
Of course, there would still need to be an inadequate category for significant safeguarding concerns, where frequent subsequent inspections should be arranged until the setting reaches a safe standard.