The factory-installed generator on my Class C also pulls gas from the gas tank, but it does not seem to use very much gas at all. I have run it several hours a couple of times and barely noticed. It powers my AC, TV, 120 plugs, and microwave with no problems. And obviously, it charges the coach batteries if I have been dry camping and using them heavily.
And to start it, you just push a button near the side door or at the driver's seat. So, if I am at a rest area or someplace, and it is hot out, and I don't want to get out of my vehicle, it is very convenient to just push that button. Nothing to get out or put away, and i can stay safely locked inside wherever I am.
I don't know about other Cs, but my generator also acts like jumper cables. If my engine battery is dead, I just turn on the generator, let it run for a few minutes, and then push the emergency start button near the steering column while I turn the key, and it will start the engine and charge the battery enough for me to drive.
I think the built-in generator is a good reason for getting a C or an A over a trailer. Most of the external generators you buy for trailers are not powerful enough to run the AC. All they do is charge the coach batteries.