Generator sizing comes down to which loads you want during an outage. Essentials (refrigerator, lights, internet, furnace blower, well pump): 8-12 kW handles it. Most homeowners want more — major appliances, AC, electric water heater: 14-18 kW is the sweet spot.
Heat pump households need 20+ kW because the heat pump itself draws 5-7 kW continuous in heating mode. A 14 kW generator can't handle a heat pump + the rest of the house. We size up accordingly when we know electrification is in the future.
Fuel: natural gas is the right call 90% of the time in Seattle metro because most homes are already on PSE gas. Propane only for off-gas-grid properties (some Sammamish, Issaquah, rural Pierce). Diesel for commercial only.