"You'll just need 120vac close to the switch to power the insertor's adapter, but as far as I know there's no reason why you can have the insertor right at port 1."
The problem with having the diplexer in port 1 with the power inserter is the high voltage passing through the diplexer. Like Simon said a high current passing diplexer will work but to be honest I wouldn't take the chance unless absolutely necessary. Some cheap diplexers won't handle the current and could cause damage to the switch or not provide enough juice to power the switch.
It's clearly stated in that document that I linked, not to use a diplexer between the switch and the power inserter. I'm pretty sure that Dish Network has tested it and thus the warning.
Bk63ross a member of this forum, had a problem with his DPP44 where all the receivers lost the signal and resetting and unplugging everything from the switch didn't bring it back. He replaced the switch with a new one and the same thing, no signal. We found out that diplexers were on port 1 where the inserter was so we moved the diplexers to port 3 and left the power inserter on port 1, all the receivers got the signal back after that.
I'm not an engineer nor an installer but I saw the switch failed with diplexers used in port 1 between the power inserter and the switch. Most likely it all depends on the diplexers used but why take a chance if you can avoid it.