One problem with these emergency portable generators of course, is they lack safety components to stop them from catching fire. So we might end up with notable fires caused by generators used because PG&E shut off power to 'stop fires'. It shifts the liability to the consumer though, so PG&E is off the hook.
Few people really believed PG&E was going to do this, so a lot of people haven't purchased equipment yet. We'll see how it shapes up long term.
Solar & batteries are a solution but people won't adopt as a solution with this sort of timeline and current solar/battery prices. There'd need to be a slow but certain rise in PG&E prices and a some sort of tax rebate to really get people to convert over.
Maintenance is also a huge pain - I've got an off grid cabin, and I can assure you, you will quickly tire of dealing with it if you are using it as your day to day power source.
Backup (propane or natural gas) generators that auto kick in aren't a bad option, but are much more expensive (about an order of magnitude higher).
Would it be useful for service interruptions or only full blackouts?
Fuel is a great question. I have never looked at the consumption. Mine runs off the natural gas line, so I have no tank to fill. With this setup I feel I am in good shape for short and extended outages.
This has always felt risky to me. Sure, your setup will work for a garden-variety power outage, but not when it really matters like an earthquake or other natural disaster.
My impression of wealthy Californians is that they'd rather not have a noisy stinky polluting generator running for days requiring fuel deliveries, and if there's a "green" option that requires zero fuel, makes no noise or pollution, and is within their means, they'll prefer it.
Not to mention generators are a bit of a maintenance and operational nuisance in my experience, at least the diesel piston motor kind I've used in the past as power backup in datacenters. Most households would rather not have yet another piston engine to keep in good working order.
You're describing conventional battery-less residential grid-tied solar installations.
I specifically described Tesla Powerwall + solar.