Thanks for this response. My untrained guess is that precessional torque would cause more loss than air friction, assuming the wheel is cleanly symmetric (ex. no bolt heads sticking out). It's fascinating how many paths there are to push something up various kinds of potential energy gradient in a way that it mostly stays there by itself but is still available to us to access in a controllable way.

Wikipedia claims flywheel loss rate circa 2013 of 5% per day. https://en.wikipedia.org/wiki/Flywheel_storage_power_system

That compares to recent estimates of Tesla li-ion loss rates at under 5% per month -- 0.16% per day.

Amber Kinetics is one company building fixed flywheel storage products. http://amberkinetics.com/

They have one 32 kWh, 5-ton, 98% steel flywheel installation on Oahu; pictures here: http://amberkinetics.com/hawaiian-electric-and-amber-kinetic...