Well, it's all a matter of scale. The 500MW alternators at your friendly local power station do produce a very nice sine wave.
Coming down the scale, a 100kVA diesel genset provides a pretty good sinewave (certainly nothing to sneer at for the vast majority of applications).
Even smaller gensets down to 10 or 20 kVA will be OK if they have a quality alternator and a reasonably resistive load.
However, when it comes to very small generators (of the order of 1kW), the waveform is not so good. Rubbish alternators connected to underpowered, poorly regulated engines with very little flywheels mean that (among other things) the load regulation is poor, which leads to a squiffy waveform. Also, the pureness of the sinewave from a small alternator is dependant upon the characteristic of the load. If you put a 500W halogen floodlight on your 750W generator, you would get a pretty good sinewave. On the other hand, if you put a few compact fluorescents and a few switched mode battery chargers and the portable TV set on your
750W genny (only pulling about 150W total), these things add up to being a horrible non-linear load and the waveform would likely be all over the place.