Update: I replaced these new unbranded brushes with my old bosch ones, cleaned the commutator (fine grit sandpaper + contact cleaner) and all seems good now. No generator red light, no visible wearing of the brushes.
I would agree, the combination of soft brushes and a worn bearing could cause the lower brush to get chewed very quickly.Getting a hold of decent carbon brushes is a mission these days as the new ones are cheaply made and not compressed under as high a pressure when manufactured. This then makes a soft material that will wear quickly.
I would, however, check for play in the genny's front bearing. This is cause the constant downwards pressure of the belt tension will cause the bearing to wear and pull down.