Plasma Gasification is a neat new real-world technology that takes any kind of trash you want to feed it and heats it to 5000+ degrees C.
http://en.wikipedia.org/wiki/Plasma_arc_waste_disposal
This turns organic compounds into gas which is largely hydrogen and carbon by volume, meaning you can burn it for power, more power than you used roasting it in the first place.
Everything that doesn't turn into flammable gas gets melted into what's called slag, which is a black solid kind of glassy brick-like substance.
So can we get one of these? Can throw anything you can throw into a recycler into the gasifier instead, and you get 5 EU/t or so + slag, which could be a dark block, maybe a little harder than stone, that I can pave my roads with.
I'm not sure if it's possible for a machine to produce both power and a product, but it seems like it would be doable.
It should be semi-expensive, since even though it burns through input way too fast to be a primary power source, you're still getting electricity for dirt. Maybe using an advanced machine block + EDIT: generator.
Plus you'd probably want to make slag non-recyclable to prevent people getting both power and scrap from one item.
Would be my suggestion. I'd have used advanced alloy instead of refined iron, but there's no smiley for it.