Chris,
That lockout device makes a lot of sense.  The auto-lockout panels are rediculously expensive.
I believe I may eventually get a PTO generator.  I like the idea of not having another engine to maintain.  I will hook up a generator jack to one of the service panels outside beside the power transformer.  This approach has the advantage that I don't need a long expensive cable running from the generator to the indoor electrical panels.  In addition, the outdoor service panel is far enough from the house that I won't have to worry about exhaust fumes.  Plus, since the generator will be upstream of our main electrical panel inside the basement, I can turn on anything I want to in the house as long as I have enough power.  Our water heater is gas and we can heat the house reasonably well with the fireplace.  Eventually we plan to replace our freebie electric stove with a gas stove.  In the grand scheme, once implemented, I believe we could live quite comfortably during an extended power outage.  
Interestingly, if we were not on well water, I probably wouldn't get a generator.  With cold water, a gas stove, and the fireplace, we could handle a day without power without much trouble.   The only big concern about an extended outage would be the freezer.  But since we have a well, we'll get a generator regardless.
Obed