> be efficient for generating power when the magnetic field does
> not 'radiate' outside the steel for us to capture with a coil..?

The model of the Aharanov-Bohm effect for magnetics goes something like this: If
you have
an infinitely long inductor with varying flux inside and no external flux, a
coil wrapped
around that core will transfer power out of the core. This is without external
(in air) flux.

Try to think of the MEG not as a transformer but as a dual pathway for flux with
switches to
stop or decrease the magnet's flux on each leg. When we make these switches so
they
produce no external flux but do switch the internal flux pathways, we have a
working MEG.