I always find with these interpretations, you try and find a farcical example and see how that would be interpreted, then bring it back to a very mild/borderline example and see if that interpretation still stands.
So imagine Holmes walks over to the Tigers 40 metre line, then jogs back 10 metres before putting in his kick. Obviously that's farcical and you would expect it's a penalty.
Or, and what I believe the rule is mostly for, preventing the player from advancing the ball beyond the mark before kicking, particularly from a drop-out.
So if being 10 metres offside before a kick is unacceptable, surely then being 1-2 metres offside is equally unacceptable.
I'm happy for everyone to say "yes it's in the rule book but we don't really police it", but I do not accept if they say "well it doesn't make any sense to penalise the kicker for being in front of himself", when all that does is prove that they aren't reading their own rules.
And if they are going to permit rugby-style round-the-corner kickoffs (which are the most effective for sending the ball on an arcing 10-metre high trajectory, especially on your off-hand side), then amend the rule or introduce an interpretation and make everyone aware of it.