I have heard people state that Code Generators and T4 templates should not be used. The logic behind that is that if you are generating code with a generator then there is a bet
Generics and code generation are two different things. In some cases you could use generics instead of code generation and for those I believe you should. For the other cases code generation is a powerful tool.
For all the cases where you simply need to generate code based on some data input, code generation is the way to go. The most obvious, but by no means the only example is the forms editor in Visual Studio. Here the input is the designer data and the output is the code. In this case generics is really no help at all, but it is very nice that VS simply generates the code based on the GUI layout.