The flaw in the thinking there is basic physics. It requires a certain number of hp to take a car a certain distance at a certain speed.
In an electric car, the hp is provided by electric motors, using stored energy from batteries. Once the batteries have depleted, there are no more horses left. The advantage is less emissions in built up areas, and the economy of scale getting your power from a coal fired power station instead of a less efficient I.C.E in your car.
In a hybrid car, the batteries are backed up by the I.C.E, which provides reserve power to reduce heavy loads on the batteries, and recharges them as well.
In a car with electric motors powered by battery, and a static engine to charge the batteries.. the engine still needs to provide the same amount of hp as the batteries or normal I.C.E car would. The energy has to come from somewhere!! It may even need to provide more, since you are simply adding an extra bottleneck with the batteries and electric motors it has to pass through as well.
To get a car that provides say 150hp, similar performance wise to your average 2L hatch, you need a power supply that generates 150hp. A very small engine may not be enough.
Another problem with a static engine is that a lot of the time its simply wasting fuel when the demands are low, such as in city traffic. Batteries no longer require feeding if you arent discharging them.