Using dirt to grade away from foundation. Good idea or not?
I live in a very wet climate and that is exactly what we do. Often, the level of the dirt on the outside of the foundation is higher than the level of the dirt on the inside. This is acceptable as long as the soil slopes away from the house on all sides. (Yes, the outer surface of the crawl space wall will be wet/damp, but it would be wet in a rain storm too and this moisture will evaporate...especially in LA.) When we have problems is when one side slopes down to the house and then the "surface" water wants to "stand" (puddle) against the foundation wall and eventually seep into the crawl space. 

I think your Inspector is correct. (If you have a basement, then things are different, but you said crawl space.)