Hmm.. I think we’ve reached the point of entrenched attitudes and to go further would create more heat than light. Believe it or not, Mono, I have survived a 32 year flying career without ever considering the TO/FROM flag to be very important. Sure, in some of the failure cases used in the arguments above I would have regarded it as important, but if the RMI needles work and the compass card works I have used the situational awareness those things give me, to which the TO/FROM has added nothing.
In my present job, I see many people flying outbound (up the Final Approach Track) for Procedure Turn to come inbound. They like to have the arrow on the Inbound QDM rather than the way they’re going. I can’t see that that matters much. And that is why, in answer to the original question I maintain that it doesn’t matter.
The other reason we will never all agree is the word “matters”. What matters to one will be trivial to another. But if, therefore, it is a question of your personal definition of the word, then it can’t “matter” in a fundamental sense. I say that which way round you have the needle is not going to kill, or even disorientate you, unless you have some other failures to go with it.