My problem is with our focus on how we're converting the energy in such an energetic phenomenom as nuclear fission. Instead of utilizing the kinetic energy directly, such as that of a combustion engine or jet engine, we're simply harvesting the by-product that's produced: heat. Am I wrong? Is heat not the by-product? I have a difficult time understanding how such is the case if in chemical reactions the by-product is more-less the bane of the process rather than the product that we're aiming for.
But that's the point. There is no 'direct' kinetic energy - the kinetic energy is from combustion is random, not directional. There must necessarily be losses when making it directional, and the size of those losses is dependent on the temperature gradient from 'hot side' of the engine to the 'cold side'.
An internal combustion engine is a heat engine, just like a steam turbine, and a jet engine. They follow the same 2nd law of thermodynamics that prescribes the maximum efficiency - beause they are, the same thing - just slightly different ways of doing it.
The complex mechanical systems is an internal combustion engine severely hamper the efficiency. Similarly, jet engines due to weight considerations, may not always operate at the very high temperatures and pressures needed to achieve best efficiency. Although, advanced material designs have made it possible to boost jet engine efficiency, to the point that it is almost as good as piston/propeller engines.
If you scale up a diesel engine to small power-station size (100,000 hp), then you get efficiencies better than 50% - due to improved control of friction, and reduced adiabatic heat losses to the engine substrate.
State of the art, super-temperature gas turbines, can achieve about 45% efficiency. Which can be increased to about 55%, if the exhaust is used to heat water for a steam turbine.
The reason current power stations tend to use water/steam is that the cycle is well understood, and materials for operating at those pressures and temperatures are well characterised. Jet engines, and gas turbines, which operate at extremely high temperatures, require exotic single-crystal superalloys, which cost 20x their weight in silver.
The advantage of water/steam is that the conversion from liquid to gas embodies a lot of energy. Using a gas (e.g. air or helium) would require pumping a much larger mass of gas, to transfer the same amount of energy (because you don't get the 'concentrated' energy of the phase change).
The disadvantage of water/steam is that it becomes difficult to design a good boiler for very high temperatures (> 400C) because steam is much less dense than water (and so less effective at transferring heat from the boiler). This can be worked around by increasing the pressure to such a high level that the steam reaches the same density of water (the water and steam under such conditions act indistinguishably from each other and simply become a single fluid - this is called a 'supercritical' fluid). Modern coal plants use this technology, and it is well understood. The problem with going to supercritical water is that it's viciously corrosive (this is well understood in conventional plants, but supercritical water nuclear plants remain a long way off, as the best known supercritical water compatible materials are not nuclear compatible - research is continuing).
Similarly, there's no reason why you can't take a nuclear heat source, and use it to heat air , in a gas turbine, in exactly the same way as a jet engine heats air in it's turbine. The issue is purely one of materials. At the low temperatures safely achieveable by current nuclear fuel, steam is an excellent method of energy conversion, and is more practical than a jet engine type design (a Brayton cycle engine, to use the technical term).
If we had a nuclear fuel technology that could safely operate at 900-1000 C while gas cooled - then a Brayton cycle would be a fabulous idea.