The phone quite easily fits into the holster with the screen facing outwards, and indeed, the way the clip is designed, it looks like it's made to do that (the prongs on the clip wrap neatly around the bulge of the camera.) It actually snaps in slightly easier this way
Today I received a double-capacity battery for my phone, which makes it about 1/3" thicker and no longer able to fit into the holster. Until I turned it around and tried to put it in screen first. It fit perfectly. Better, in fact, that before. It's now plainly obvious that's the way the holster is designed: the holes line up with the buttons, the shape of the clip fits perfectly into the bulge for the camera, and the slight slant at the base of the holster matches up perfectly with the slightly slanted bottom of the phone.
I noticed someone else putting their phone into the holster with the screen out, so I went around and asked everyone how they holstered their phone. Only one person said screen inwards, everybody else was putting them in backwards.
I was wondering why we were having an abnormally high number of broken holsters, now the reason is obvious.