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Its not my logic, it is however code. Look up NEC 702.4 and make sure you understand the rules for adding a generator utilizing an ATS.
And yes, you are correct that you would need a large generator for handling a 200A service.
I did make make the assumption that you were...
It is against code to automatically connect a generator and create an overload condition on the generator. That is one of the issues with putting in an ATS. Its not just the rating of the ATS but also the rating of the generator. You can't connect a generator AUTOMATICALLY with more connected...
Just want to point out that using a 225a automatic transfer switch with a 10kw generator is against code without active load shedding on your downstream panels.