I can still remember the drag from the bottle generators I used in the mid to late seventies. The drag was very noticeable. When I was at Fort Ord in California in 1980 a local bicycle shop had the Sanyo generator that mounted in the kickstand area in front of the rear wheel. I purchased one then and the difference in drag was quite pleasing. They didn't last as long due to the location were the rear tire sent sand and dirt into them.
It will be interesting to see what Schmidt does with there new headlight. I know that Sinewave cycles made some changes to there Beacon headlight. The first one flickered annoyingly at slow speeds, so the Beacon 2 was produced to solve this problem. The Supernova M99 DY PRO high beam dyno headlight doesn't achieve a steady headlight beam in low beam mode until 6 to 7 mph according to one reviewer. I am hoping that B&M and Schmidt do better with there new high beam headlights.