You might want to grab a basic electrical theory book and check that. A generator, driven smoothly at a constant speed, produces a smooth sine wave - pure AC. That's what you've got coming into your house, once it's been stepped up and down a few times. Simply put, the voltage rises smoothly as the motor (belt, whatever) turns the windings on the shaft of the generator past the stationary coils until they reach the point where the voltage peaks, then begins to drop smoothly as the windings continue turning. The voltage will go 'negative' just as smoothly, until it reaches the maximum 'negative' peak, then begin to rise again. You get a smooth AC sine wave, something like this ~ (tilde, in case the forum won't print it right).
A DC/AC converter, whether solid state or vacuum tube, takes the DC voltage and chops it up into a square wave - hard to do that on a keyboard. Since it switches almost instantly, the leading and trailing edges of the wave are almost completely squared off. As you step it up or down to get the voltage you want, it will appear slightly less 'square', but will never be a perfect sine wave without more circuitry to refine it and shape it.