We used our generator on long range cruising only. It did "save" us at least once when we found ourselves in a very remote place with dead batteries. However, although we always carried it on extended cruises, we used it sparingly. These small Hondas are remarkably quite, but if you are really out in the boonies at a quite anchorage - well, let's just say we found the noise incompatible with the ambience. In other settings, consideration of nearby boaters affected our decision to start the generator.
That's not to say we didn't use it at all. Where we live and boat it can be quite cold, and really, really wet. So for us, heating rather than cooling, is a priority. The generator allowed carrying a small electric heater and fan that could warm and dry out the cabin. There were plenty of times when this use of the generator seemed a lot more like a necessity than a luxury.
Like Thataway Bob, we installed detectors, and didn't run the generator inside the cockpit or store it in the cabin, and never left it running while we slept. Like the OP, Baxter, we had a full-height transom on our 23 Venture.
The platform we used in the splashwell put the exhaust port of the generator below the level of the cockpit gunwales and the transom top.
Bill, Formerly on NORO LIM