National Electrical Code 2014 requires ground-fault protection for personnel in dwelling units for all 120 volt, single phase, 15 and 20 ampere receptacles installed in the following locations:
- Bathrooms.
- Garages
- Accessory buildings with floors at or below grade that are not intended as habitable rooms.
- Outdoors, except where receptacles on dedicated circuits are not readily accessible, and are used to supply snow-melting, deicing, or pipeline and vessel heating equipment.
- Crawl spaces
- Unfinished basements, unless the receptacle is on a dedicated circuit and used to supply a burglar alarm.
- Kitchens where the receptacles serve coutertop surfaces.
- Where a receptacle is within 6 ft. (1.8m) of sinks in other than kitchens.
- Boathouses
- Where receptacles are installed within 6 ft. (1.8m) of the outside edge of bathtub and shower stalls.
- Laundry areas
Arc-fault protection is required in dwelling units for all 120 volt, single phase, 15 and 20 ampere branch circuits supplying outlets and devices installed in:
- Kitchens
- Family rooms
- Dining rooms
- Living rooms
- Parlors
- Libraries
- Dens
- Bedrooms
- Sunrooms
- Recreation rooms
- Closets
- Hallways
- Laundry areas
- and all similar rooms and areas
I don't know where you shouldn't install them, I only know where you are required and not required to. I guess you shouldn't install them anywhere they're not required, or you'd be wasting money?