Yes, you're correct- a 3500W generator will not operate a clothes dryer. It cannot operate full nameplate rating of a range or 2.5 ton heat pump, either. However, that said, have you ever tried clamping these appliances? Despite being powered by a 60A and 30A 240V circuit, my AC load last july was a mere 3120W- low enough that a 3500W genny could power it. Likewise, turning on the oven, or one element on the range, doesn't draw 40A, just 10 or 12A. (Makes sense that a 1200W range element will only draw 1200W!) My fridge at work draws 8A in-rush, and 1.3A while running; I haven't clamped my fridge at home, but I imagine it's larger. My microwave draws 12.5A. Sufficed to say, all these appliances can be easily run by a small generator- just not all at once.
With the heat pump, range, dryer and water heater breakers open, my whole house load, IIRC, was 3A on one conductor and 5A on the other. This reflected our typical condition, with lights on in most rooms, 2TVs on, my computer, my wife's laptop, two refrigerators, and every clock, VCR, etc, in the house- roughly 1000W of load. Makes sense- my average electric bill points to less than 3000W of average load, and most of that is for heating and hot water, things I wouldn't expect (or try) to power from a generator like this.
