I faced in, and then faced out, on a short 1-inch diameter 6061 aluminum rod, using a knife tool. Depth of cut was 0.02 inch. Spindle was turning at 800 rpm. I don't know what the feed rate was. The chips were very different. See below. The chip from facing in is above; the chip from facing out is below.
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I think I can see why facing out produces a better finish. It's like having a large nose radius.
When I read about facing out with a knife tool, I doubted that facing out means what I means. It seemed wrong -- that to face out is to orient the x-y surface with a negative clearance angle.