Pretty much this, yes. If you want to walk straight into a salaried, "9-to-5," 100% clinical job, psychiatry is going to have more options and offer better pay. There may be more responsibilities relating to call, but I imagine that can vary by employer and job type. And of course everyone in this forum can tell you more about this work than I can.
As for what a generalist psychologist does in typical clinical practice, in many/most settings, it's going to be a lot of psychotherapy combined perhaps with some psychological assessment. It can vary depending on what service the psychologist is embedded in and what services the hospital itself has available, although then you're moving away from generalist practice--for example, in addition to psychotherapy (e.g., CBT for chronic pain in a pain team, adjustment-related psychotherapies in an oncology clinic or medical inpatient unit, targeted intakes and brief interventions in primary care mental health, etc.), the psychologist may perform pre-surgical evals for organ transplants, living donors, or spinal cord stimulators.
The psychologist may also have some research involvement (more likely in AMCs or VAs with an affiliated MIRECC), participation in training, and/or program evaluation as a part of their duties.
I wouldn't say generalist jobs are hard to come by, but in many systems, they seem to be increasingly offered to masters-level therapists.