I'd love to see a schematic of the circuit that would perform as you say. I strongly doubt this would work as advertised.You can get PWM out of AC, if you put a capacitor in the line, you get different amounts of on-off time if u change the capacitance, but the wave isnt a perfect square, its a discharge curve. (a quarter of a harmonic)
You can't solve all your electronic problems by adding capacitors - your favorite component it seems.