When specifying a route other than an established
airway or route, do not exceed the limitations in the
table on any portion of the route which lies within
controlled airspace.
4−1−2. EXCEPTIONS
Altitude and distance limitations need not be applied
when any of the following conditions are met:
a.
Routing is initiated by ATC or requested by the
pilot and the following is provided:
1.
Radar monitoring.
2.
As necessary, course guidance unless the
aircraft is /E, /F, /G, or /R equipped.
So in my opinion (which is worthless) the answer to the original question is that the clearance was appropriate. Using the box and flying white line to the localizer would have been appropriate. Once established on the "published" portion you are by default within the service volume unless the facilty is restricted/NOTAMed for some distance other than what is published and it would be appropriate at that time to transition to green needle. As always, if there is a question about a clearance, ask. If there are differing opinions within the pilot group (that never happens right?) might be a good question for training/standards.
And for USMC