Describing possible ways to get alternative fuel always amuses me. Just look at the world consumption, and then imagine what it would take to produce a tenth of that figure.
Daedalus. You almost perfectly describe the system that I envisaged many years ago. I did mention it in a post a while back but can't find it quickly.
There were two main problems to it being developed by a small company. One is that it will happen, but the big boys will take it with $millions to fend off patent lawsuits. Dyson had a tough time and won, but coming up against GM is something else.
The other is the high voltages that initial calculations show to be needed. 200 min- 400 optimum and true sinusoidal AC is about the mark. DC chopper circuits would be almost impossible to suppress--radio wise–at those currents. All very iffy round civilians. Difficult but a perfect system to be fed by electricity direct, or from the ancillary engine-generator. Traction control would be a simple matter of software, and braking would be largely electric at higher speeds.
Train type diesel engine generators are of course very good engineering. But the cost, even in miniature. Back to the Hybrid.
Hydrocarbons need to be kept for important manufacturing processes and aviation. Cars are simply wasting a non recoverable resource at an horrific rate. Has anyone ever calculated how much fuel has been used in total...and then described it as a cube?