I have continued my research on this topic and have found great information, but still have some questions/concerns.
I've found that we don't use them currently, due to the fact the doubled wave magnitude ends up being around 60kV, and the transformer BILs are 95kV (for the 12kV system). Therefore the transformers should be protected without the use of an open point arrester.
However, I spoke with some companies who suggest that there's more to it than just BIL, and that the cable itself could suffer degradation from even 60kV (deficiencies in the cable could be exploited over time; not in one incident, but over time they could end up failing). However I can not locate any data to verify this. Thoughts?