And add to the equation that all energy being created by the ICE is being stored (within the efficiency limits of the generator and battery). No wasted energy by sitting idle at red lights or in grid locked traffic.
Well, they wouldn't quite do it like that. Because of how efficiencies work, you would take the power from the ICE to *first* power the electric motor, then use whatever wasn't being used by the internal systems to charge the batteries. So basically you run your ICE 30-50% of the time, during which it's powering the electric motor and internal systems then charging the batteries until they're fully charged. Then you power down the ICE until the batteries are down to 20-30% charge (probably flip a switch for 'long-range operation' so the car knows that it should be doing this instead of the 5-10% from normal operation) and re-do the cycle.
Using the ICE to charge the batteries, then passing through that energy to the electric motor would result in power from the ICE being lost, while powering the electric motor would be at 100% efficiency (modified for the motor's efficiency ratings) and the batteries being charged more slowly (quick charging batteries is less efficient than a slow charge anyway), so you're getting higher efficiency for the ICE running in it's 'ideal' range and you're getting higher efficiency for the electricity that is coming out of the ICE. Then again, it still might be cheaper and more efficient to just have the vehicle run off an ICE that is running at lower efficiency for a period of time. Translating energy of any type into another type (mechanical energy into electrical and vice-versa) is relatively inefficient, whereas sticking the ICE on the end of the electric motor (with the transmission between them) might be more efficient in the long run, even though you're not running in the ICE's most efficient range.