Ryder may say different, but my experience has been diesel, with a qualifier. One of the problems with the stuff you can buy at Home Depot is that it is a two pole generator, so the engine hase to run wide open, 3600 RPMs to keep the 60Hz requirement of our appliances. This would be true of any fuel you use with a two pole. Now a four pole generator would allow a cut back to 1800 RPMs, or a bigger engine running even slower, but that would require the generator head to be separate from the engine and geared so that the generator part is doing 1800 like these engines
http://www.listeroid.com/ This one has a small video and IMO real cool.
http://www.poweranand.com/default.htm Now when you start talking about these type of diesel gen sets that are 5-10 K you aren't going to pay $500-$1000 for them. They are more expensive. Plus diesels are built heavier and tend to have a larger oil capacity, hence a longer life. Running biodiesel would be better for them too. Personally I love diesels.
Now on the other hand Propane and Natural Gas are much cleaner running, which will allow your oil to last longer and that help with engine life over a gasoline one. You can get a conversion kit to turn that gasoline one into Propane or Natural gas or all three. I did it with my generac before Y2K
http://www.propanecarbs.com/dualfuelconversion.html. Gives you fuel flexibility. But they still will run at 3600 RPM. No matter how you slice it, the engine wears out faster than something running slower. If you just have to have a gas engine or one like at Home Depot, at least get one with a Honda engine. They tend to last longer than a standard Briggs or Tecumseh. Cast Iron cylinders help with engine life too.