You make an excellent point, EgoM. However there is a trade off. Theoretically, the most effcient nozzle is one which has nearly infinite length, until the gas has expanded and cooled to the ambient solar wind level of concentration and thermal energy. The problem with this is that the longer you make the nozzle, the more mass this takes, thus dropping your T/W ratio. It would also be difficult to fit a near infinite nozzle into a rockets upper stage.<br /><br />Thus most rocket engines designed for vacuum operation really aren't, they are compromises between expansion vs engine mass and length.<br /><br />Engines designed for sea level operation are limited by their expansion to exhaust combustion gasses at the nozzle exit at or above sea level atmospheric pressure. Theoretically you could make these gases also ambient temperature at that pressure, but this would require a very long expansion nozzle that was very heavy. Like vacuum designed nozzles, they are shortened to improve thrust to weight ratios, and as a result the exhaust is still extremely hot. <br /><br />There is a means of converting kinetic energy of hot combustion gasses to electricity. One is called magnetohydrodynamic generation. The exhaust nozzle would be surrounded by electromagnets that impart a magnetic field on the exhaust gases, which are actually a plasma. The plasma acts as the rotor in a generator, imparting force upon the electric field of the stator, and thus generating current.<br /><br />The question then is: so what? Lets say you are able to slow the exhaust products through MHD to low speeds. You still have to do something with them. Carrying them on your spaceship only adds dead mass to your ship. If you don't have means to add energy to them again and run them back through the cycle, it is useless to you. Since you need to dump it from your spaceship, you might as well do it in a way that gives it the greatest velocity, not the lowest.<br /><br />Now, there are proposals to use a working f