Your math is a bit off. The cheapest 10kw diesel generator I could find was $13,000, assuming you used it about 100 hours a year, it would cost you roughly $202.4 per hour to operate. Of course, 100 hours a year is kind of ludicrous, and if you end up using it that much, you have problems far beyond the need for a generator. Little more per hour than $2.40.
So is yours...
100 (hours) * $202.40 = $20,240
$20,240 - $13,000 = $7,240
$7,240 / 100 (hours) = $72.40 of diesel per hour!!
What you probably mean was:
100 (hours) * $2.05 ($3.25 cost of diesel per hour minus the cost of electricity you would have paid - $1.20) = $205
$13,000 + $205 = $13,205
$13,205 / 100 (hours) = $132.05 per hour.
Now still, the problem with the above calculations presume that (1) the generator has no value in 12 months and/or (2) the life of the generator is 100 hours.
The fact is you could buy a generator used, make light use of that generator over 12 months and resell if for little to no loss. Depending on market conditions, you could even make money on the generator.
My point, however, wasn't to argue the cost of acquiring and operating a generator... but that if someone was interested in an alternative to an industrial UPS, there would be options.
(And yes, you could also sell a UPS, but you would have a far easier time buying and selling a generator than an industrial UPS!)