Space propulsion is unique among many proposed applications of the Dense Plasma Focus in being critically dependent on the availability of a scaling theory that is well-grounded in physics, in conformity with existing experimental knowledge and applicable to experimentally untested configurations. This paper derives such a first-principles-based scaling theory and illustrates its application to a novel space propulsion concept, where the plasma focus sheath is employed as a power density amplifying mechanism to transport electric energy from a capacitive storage to a current-driven fusion load. For this purpose, a Generalized Plasma Focus problem is introduced and formulated. It concerns a finite, axisymmetric plasma, driven through a neutral gas at supersonic speed over distances much larger than its typical gradient scale length by its azimuthal magnetic field while remaining connected with its pulse power source through suitable boundaries. The Gratton-Vargas equation is rederived from the scaling properties of the equations governing plasma dynamics and solved for algebraically defined initial (insulator) and boundary (anode) surfaces. Scaling relations for a new space propulsion concept are derived. This consists of a modified plasma focus with a tapered anode that transports current from a pulsed power source to a consumable portion of the anode in the form of a hypodermic needle tube continuously extruded along the axis of the device. When the tube is filled with deuterium, the device may serve as a small-scale version of magnetized liner inertial fusion (MAGLIF) that could avoid failure of neutron yield scaling in a conventional plasma focus.