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There are many regional differences and each town inforces building code differently and/or is more or less strict than the code as published.
Simply digging a trench and pouring concrete in it is cheaper than forming for footing, stripping the forms after the pour and whatnot. However I can't imagine that your frost line is so shallow that a simple trench is a good idea. In most areas a 16" wide footing is minimum and pouring a 16" wide trench with 4' of concrete is wasteful and shows a lack of professionalism rather than any kind of best practice.
It's more or less standard practice in most areas to form and pour footers with the width defined by soil load bearing ability - rebar is specified more or less based on the total load and width of the footing - and the amount and location of steel in the stem wall is dependant on loading and earthquake activity in your area. Some areas with problem soils will have more strict requirements than other locations. How is he determinining the footer width?
Concrete block is never as good as a poured wall and probably is more a factor of your contractor not having access to proper forms.
I don't live anywhere near your region, but many things your contractor wants to do don't seem like good ideas to me.