That's pretty clever, but seems like kind of tight quarters. I have not cast anything in stone and am going to wait on the remodelling part. Would not want to run the generator inside for very long anyway due to the noise. I don't bother with the generator either unless the power is out for awhile. If it's raining, I put it on my open porch, otherwise it's in the yard 20 feet from the house. I may put it in the tool shed on a rainy day, that is 30 ft from the house with a big door.
Only had one long outage here in the past 10 years, 5 days during the derecho. I mostly use candles for lighting, just need the genny for the well pump, refrigerator and (now) the hot water. Woodstove heats the whole house, and I have a full winter's supply of wood ready.