The benefit is the energy density of petrol is ~2500Wh/kg, vs about 250Wh/kg for Li-Ion batteries. This is significantly offset by the weight of the ICE engine & generator, but it is still enough to get very good flight times. It is enough to do using selected off-the-shelf components, but to get really outstanding results, everything needs to be optimized for excellent power-weight ratios.
Two big ones in that space, going back-&-forth and beating each others' records are:
Skyfront: www.skyfront.com https://www.youtube.com/watch?v=KXFoBUR_jqY
Quaternium: https://www.quaternium.com/ https://www.youtube.com/watch?v=cvBjCejUmvY
And yes, at least the units we built had significant batteries in the loop. The main purpose was to be able to land if the ICE engine/generator failed, but also could be used for a less-noisy mode ("quiet mode" is a bit much for most multirotors, as the rotors themselves are quite noisy).