Thats a transfer switch, and that's exactly what you want here. You want only a few essential loads on the generator, not your entire home. The furnace should be on it, modem and networking equipment, a few outlets for charging phones, refrigerator and deep freeze. Sump pumps.

The electric hot water tank doesn't need to be on the generator. The welder in the garage. Electric range. Dishwasher, Christmas lights, EV charger, pool heater, spa, or other big appliances that can be done without in an emergency.

That ain't bad at all.

I'm baffled by people going without power being a somewhat regular thing. I've never in my life been without power. I grew up on an old farm, and not once did we lose power. Sometimes lightning would flip the breaker, but never more than that. I realise this is because of the difference in size and infrastructure between my country and USA, but it's still wild to me, that some people in a rich country actually need a generator. I've only ever seen a generator once in my life. It was used at a beach party to power the music.