Sure, if you're an electrical engineer, you might want to stay with an all electric thing (and electric engines are flexible) -- but if one was serious about lifting packages, it would seem you'd want to explore other, well-tested options that give you more lift/flight time?
I mean, if we can deliver hellfires from drones, surely we can deliver some books?
http://mydronelab.com/blog/gas-powered-quadcopter.html
I don't know whether they use direct coupling or motor-generators, though.
Model aircraft engines have a long and time-honoured history. My father was into them as a child in the 1950s (before radio --- you controlled them by swinging them round your head on wire harnesses!), and still has some of the engines. Beautiful, beautiful engineering; about the size of my thumb, which ran on some ghastly cocktail of exotic oils and volatile spirits.
But, if your going with tilting blades just use a helicopter design which is mechanically simpler than 4 tilting blades.
EX: There are some options that don't involve a swashplate. (ZX-35041) considering it's 20$ it's probably junk. But, notice how the tail blade is pointing up.
You could build a tilting quad copter with 4 engines, but that's significantly more complex. You can also use one engine and get power out to the 4 blades but that also get's complicated. Still the point still stands, Quadcopter's need to get more complicated as you scale them and things like vibration make everything worse.
What amazes me at those little things is how little side-to-side drift they have, considering that's all depending on the CG being well centered.
A nice variable pitch quad: https://www.youtube.com/watch?v=Vy5Ky50eGJs
However, in the end people have tried a lot of man sized flying designs and for vertical takeoff and hovering helicopters really are about as simple as it get's.
Yeap, nailed it, apparently, vibrations are its biggest issue.
Consider a golf course that can deliver cold beer out to the green via drones. 8 ice cold beers at ~10lb in a few minutes via cellphone app. A drone could probably do that 5 times on a single charge, and swapping battery's is easy. Charge 2$ extra per beer and it's both rather profitable and for now a unique experience.
Saves massively on gas and people time (especially when self driving trucks are mainstream) and in theory are the main way you might deliver packages in a fully autonomous delivery setup.
Also, I think the cost is more from how modular the thing is, it's very much a professional product which limits sales.
PS: Looking at lose curves, it should be able to do 1hour with 5lb and significantly more battery's. But you get more total flight time with fewer battery's that your hot swapping.
While one is in the air, the other is getting its battery packs swapped out.