Also lights/poles are being placed on top of cliffs and over oil ocean with ignore "Ignore Placement on Cliffs" enabled but I appreciate that might be a complex issue to solve.
This island is kind of the worst case scenario for it. The option should help when water/cliffs are touching only the edge of a resource patch; it's really not that smart for such restricted space.
Fixing power pole placement over cliffs is a bit of at odds with operation order and would need refactoring.