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You’re exactly right. The energy is not actually generated by gravity. Your
body lifting the object creates the potential energy. The resistance of the
dynamo transfers the energy into electricity which is immediately expended
by the light.
Gravity isn’t really an abundant or infinite energy source. You practically
run out of usable energy the moment it touches the ground. And it requires
more energy than you can get out of it to lift it back up.
It makes sense for a little light like this, but it can’t be scaled up any
more than this.
You can’t make energy from gravity! You have to lift an object first, and
by doing that you move energy from your hand to this object. This object
works just as a battery. It has potential energy that you can change to
electricity. But you never get energy from gravity – you just use this
object to store energy from your body!