On my bike anyways,the oil light is definately pressure.The sender is threaded into the pressurized oil galley near the filter housing,well above the oil level.If it were an oil level sensor,it would be in the sump,near the minimum safe oil line.
Good thinking on the generator,Jay.The magnet resin is plasticey, and that color.And it definately would make a horrendous noise if the rotor/magnets started to hit the stator.....not to mention the metal flakes that would be produced.