Randall is saying exactly that: Through 20 years of effort, we've successfully trained everyone to use passwords that are hard for humans to remember, but easy for computers to guess
Case is only 8 more bits assuming you randomly assign case to all of your letters. More likely it will be only one more bit. Then requiring an extra character is equally good.
Then the space would be "the obeisance to the stupid website piece". Note that the entropy of "correct horse battery staple" is only one bit more than "correcthorsebatterystaple".