You get that a lot in the alternative energy field. Initial claims of over unity, then the product comes out and it's just a marginal improvement over previous methods.
More info on the BlackBox Power Station:
They can't loop it apparently, but you can clearly see in this image it has a motor and generator with a belt drive:
They are naming this particular unit the BlackBox Dominator. Supposedly the motor/generator combination allows for faster charging, but again, it is not close-looped. So... Back to the drawing board everyone, doesn't look like Doug Myers has what we originally thought. I'm sure the free advertising helped his sales some though, that's what counts right? Somebody making a buck instead of changing the world.
The PESwiki QMoGen list is supposed to be full of self-looping over unity devices. There's even some guy in Nigeria who claims to have done it. How hard could it be to replicate?
If the flywheel is necessary at all, it will be to store energy that's provided to the motor, to pulse the generator past its next step of physical resistance. That's mad. Bedini has proven for years you don't need physical resistance to create electricity. It's using a dinosaur (standard generator) to do a job that can be done much more elegantly with something more modern.
If it works then one has to wonder why the electrical supply authorities don't utilize it already.
As you rightly pointed out, no amount of belts or gearing will create more power. More momentum or torque, yes. But lossess from mechanical friction are just being added along the way here. And if it could work through some mechanism undiscovered then there are much better ways of utilizing whatever effect is causing it.