Coach,
I could be wrong here, but I am not aware of any restriction that does not allow more than 2 players to be out of bounds during this type of throw-in. This legal in my book. You are right that you really do not see more than two players typically, but that does not mean it is illegal because you do not see it.
Peace
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Let us get into "Good Trouble."
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Charles Michael “Mick” Chambers (1947-2010)
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