I don't know why their shunting the extra power, but whatever. Yes, batteries in general are very poor thermodynamically, plus the losses getting it back to 110V AC. Capacitors would be almost unitary efficiency as soon as we can get them. I hear the feds are building a rail gun ship and/or some type of beam weapon ship. That's gonna take a bunch of ultra caps.
I looked at those sites too, and besides making your own generator being pretty cool, I think you'd be better off linking the thing to a standard automotive alternator with a voltage regulator, then feeding that to a proper charge controller for your battery bank, then have the inverter run off of that. Using just a 110V direct alternator (generator) off of the wheel would give you E36 M3 for surge.
That last little ice storm got me thinking. I have the HF inverter now. I need some storage batteries next. I looked online and the prices were sky high. 6V 200 Amp Hour (AH) for two bills each. Sam's has the same thing for $67 ea. Two of those would go a long way to keeping me in cold beer. Four would do better. Add a plastic truck cargo box with a few holes for vents to use as a storage box for the batteries, cables to wire them up, a charge controller, the inverter in a separate box to protect it from acid fumes, and I'd be good to go. Then comes the 8KW Honduh generator.