First of all, as stated, a transfer switch is to prevent any possibility that the generator and utility power are never interconnected. If a utility worker is on a pole near your house to fix an outage, and you accidently backfeed the power line, the pole transformer and wiring could become hot and kill the guy. A transfer switch is required by code.
As for transfer switches, the full load switch is quite expensive as you learned. The one you saw (with your link) will transfer a limited number of circuits and is lower cost. This allows the critical circuits to be powered up. Installing one is not beyond the capabilities of a DIY'er who has installed new circuits and breakers in a panel.
The other thing to look in to is a main panel by Square D. They make a normal panel that has the provision to have a breaker that can be connected to the generator to backfeed the entire panel, as you mentioned. The difference is that there is a mechanical interlock lever that does not allow the main to be on when the generator breaker is on and visa versa. It may require replacing your breaker panel to use this one, but that may be a not too unreasonable price in the end.
paul
As for transfer switches, the full load switch is quite expensive as you learned. The one you saw (with your link) will transfer a limited number of circuits and is lower cost. This allows the critical circuits to be powered up. Installing one is not beyond the capabilities of a DIY'er who has installed new circuits and breakers in a panel.
The other thing to look in to is a main panel by Square D. They make a normal panel that has the provision to have a breaker that can be connected to the generator to backfeed the entire panel, as you mentioned. The difference is that there is a mechanical interlock lever that does not allow the main to be on when the generator breaker is on and visa versa. It may require replacing your breaker panel to use this one, but that may be a not too unreasonable price in the end.
paul