These ideas are wayyyy more complicated than need to be. I have the following setup:
Honda 5000 watt generator
Cable to go from generator to transfer switch.
You just wire in the transfer switch (it sits between your incoming power and the circuit breaker) for the amount of circuits it will handle (mine does 6 or 8 I forget). Then, when the power goes out, you start up the generator, connect the power cable from the generator to the transfer switch, and then one by one, flip the circuits on the transfer switch from "line" to "generator". This is important so you can get the fridge and other heavy hitters going first. Then, you're up and going. I always leave one room off of the transfer switch and turn the light in that room on. When power is restored, that room will light up. If flipping the circuits on the transfer switch is too much, APC has an automatic transfer switch that will work as well. You just set the priority of each circuit ahead of time. Then, when power goes off, you just connect generator and start it up. APC transfer switch senses the restoration of power and will transfer back automatically. Backfeeding the generator into the home is ALWAYS a bad idea as you could kill the DTE worked down the street who thinks the wire is dead and is trying to fix it.