salmonellaeater is right, Steube misunderstands the comic. The idea of the comic is to pick a small random selection of the 250,000 distinct words in a oxford dictionary, rather than 8 of the 95 letters from all ASCII printable characters. A selection of 3 words has then higher entropy than 8 random characters, because 250,000^3 is a bigger number than 95^8. The question then is, will 3 random words really be easier to remember than 8 ASCII printable characters?
The downside to the Schneier scheme, is that each is a common sentence (low entropy), with a chosen transformation algorithm added. Thus the quality of the password will depend on the number of transformation algorithms, and the quality of each one. If we are to use the one first described to create "tlpWENT2m", we get a password strength like:
Using strictly the first letter, would only do 2x linear increase in entropy over just searching for common sentences. Change any occurrence of common numbers substitutes for words adds (0-2x) entropy increase. Writing one of the words in all caps means 6x increase in entropy. Combined, tlpWENT2m is slightly less secure than "This little piggy went to market" + two [random number below 10] or a single letter at the end.