Don, the 110 input is so the inverter can automatically pick up the AC load if the shorepower fails (and you've configured the Magnum to do so). If shorepower is present, it'll pass through.
Rodd, if you take the AC to the panel breaker before the inverter, you or someone else can turn off the panel breaker and mistakenly think that none of the outlets or wiring are hot. However, the inverter will still be supplying AC automatically (if configured to do so in the event of shorepower loss) and constitute an electrocution hazard if you're working on the AC.
If you take the AC directly to the inverter (via a breaker at the shorepower hookup for emergency cutoff), then take the output of the inverter to the breaker on your panel, turning off the panel breaker will have the expected effect of killing the AC on all wiring and outlets downstream of the panel.