*tears hair out in a physics rage*
Come on man.
I'm no freakin' genius, but I know that large amount do not equal infinity.
If you had say, a metal plate that could generate artificial gravity, then you attempted to create an infinite hydro-electric dam through this... Yeah, it's work.
Except, the power output will be less than the power input.
There are so many obvious factors that tell us that we can't get this to work. First of all, we have the fact that, unless in a vaccum, your water will be slowed by air pressure. This will loose precious energy.
Secondly, the mechanisms that drive the generator will still have friction, no matter how much you lubricate them. More energy loss.
And, finally, gravity is really weak. The energy output of water falling would most likely never break even.
Sorry for that, I have to get this stuff off my chest.
The real issue of artificial gravity, however, isn't how it can be applied, but it's peripheral effects. If you tried implementing aforementioned slabs in a spaceship, you'd soon find the outer hull buckling in on itself, because it's effectively containing half of earth's gravity inside it. Sure, this example is in space, but I'm certain the same effects would happen anywhere you put such a device. Gravity effects everything, and, as such, will mess even the smallest things up.
(Yeah, I've performed far too many thought experiments on this stuff. And I'm only off to go and do more. ¬.¬)