"Running an ICE engine at its most optimal efficiency point while charging a battery/powering"
Yes, and the difference can be substantial between the peak RPM and the amount of time in a normal vehicle outside of that RPM range.
The conversion from mechanical to electrical is rather efficient; yes, it loses more power than a transmission, but it's not so much of a loss that it cannot be recovered elsewhere.
Then there's braking/downhill, especially for vehicles that are towing, there's a lot of energy intentionally turned into heat or noise that could be used to charge a battery.
But, more than anything, the biggest appeal to me is the flexibility; a diesel or gas electric vehicle that had a full power port would solve a lot of problems for many different use cases. Whole house generator, generator in the field, battery capacity for solar with gen coupled backup for pure off grid, generator our RV, much better "around town" vehicle than plugging up the DPF on a modern diesel (and getting 15MPG in my F450).
Just a lot of different things it could do well, including, of course, the primary application; towing. Towing with 1-2000ft/lbs of torque on tap and not hearing a diesel scream up the hill would be very nice.