I have wondered about hybrids using engines as a generator in one of the earlier posts, instead of as a power source. Imagine a Chevy Volt. You enter your destination into the trip computer. The computer calculates how much electricity it will take to get there. Instead of running to maintain a charge level, it runs only enough to get you there. The point is, not only would it save fuel by only maintaining the minimum charge required, but it would also allow a downsizing of the engine because it would basically only need to supply the mean power needed for the trip, rather than for a worst case scenario.
Also, check this out:
Green Car Congress: TIGERS: Exhaust Gas to Electricity for Reductions in Fuel Consumption
We don't need to convert to steam from the exhaust to gain efficiency; let the exhaust side of a turbocharger spin a generator (or at least that's the general idea).