Flicker is a factor of any single cylinder generator. It is just more noticeable on listeroid generator plants because of the low RPM engine and the 3:1 gearing causing a greater fluctuation of the generator RPM. Because of this gearing, the RPM fluxuations have more time to effect more AC cycles, Here is a graph of a listeroid power plant over a complete 4 cycles of operation. The lower AC waveform represents 60HZ AC as relates to a 650 RPM engine. As you can see, 2 engine revolutions effect a lot of AC cycles.
The flicker is more prevalent at greater engine loads. Adding mass to the rotating machinery at any point will reduce the effects, but you will never completely eliminate them thru greater mass. As mentioned adding to the generator mass puts added strain on the belt drive. Adding the mass to the engine flywheels would have the same result in reduced flicker, but would add greater strain to the crank, pushrod and bearings. That is how the SOM's did it with really massive engine flywheels, and from what I have heard they work pretty well.
If you want to reduce most of the effects of flicker, add an AVR. It will sense the decreasing generator output and add or remove field current accordingly to compensate and maintain a more stable output voltage. You will still have frequency fluctuations, but they are less noticeable in incandescent lights.
Probably simpler than an AVR would be to copy what someone else already thought of. Some older Onan gensets had what were called "Flicker points". These were electrical contacts driven off the engine camshaft and switched resistance in and out of the field circuit to increase and decrease the generator output throughout the 4 engine cycles. On the above diagram, some resistance in the field would be switched out/bypassed at the end of the exhaust stroke, adding to the field and generator output as the RPM decreases thru the intake and compression strokes. This resistance would again be added sometime during the start of the power stroke to lower the voltage output as the engine RPM peakes. This of course would require an additional cam or some type of switch mechanism to accomplish. With some carefull adjustment, it would probably greatly reduce flicker...
Ron