You would be wrong. The Generation designation refers exclusively to PPC-based Macs. It refers to the whole computer, not just the processor. There are substantial architectural changes from one "generation" to the next.
G1-NuBus, SCSI, PPC 601
G2-PCI, SCSI, PPC 603, 604, 603e, 604e
G3-PCI, ATA, PPC 74x, 75x
G4-AltiVec (seemingly a minor architectural change) PPC 74xx, 75xx
G5-PCI-X, S-ATA, PPC 970