Correct,
I think some may be combining a stable voltage and a clean voltage in the same discussion.
While both are important it is my main concern that the generator never really had a level output voltage.
I only worked with generators for a few years as I was growing up so I know there are many here more familiar with them. But my experience with them was they really dropped off in voltage at idle.
I'm sure you "could" install the TBI system and it would actually run with what you have.
The problem with it is the system will change it's output as the voltage changes.
The electric fuel pump will slow as the voltage drops and that will decrease fuel pressure. Then as you speed up the pressure will increase.
This will make it more difficult to properly tune the system to the engine.
I know there are several companies that specialize in converting a stock generator to an alternator using the same case or you can buy them already made.
I do caution against trying to use a newer 1 wire alternator setup as they have the same problems at idle. They need to be excited to start charging and most require a raise idle to start it charging.
The older 10 and 12SI 3 wire systems work pretty good when setup per
www.madelectrical.com or the newer CS series of alternators designed to provide a high output at a low rpm.