Not a very good diagram. You can't run two alternators against each other like that without a special device to regulate two alternators together (such as a Balmar Center fielder).
This question deserves a LOT more thought than a "common" diagram. I'd refer you to Nigel Calder's book and suggest reading it a few times. Lots of tradeoffs to make, based on the particulars of YOUR boat.
The only thing I would make a blanket statement on is that if you are looking at a diagram that includes an 1/2/both switch anywhere, move on and find something less comical.