The way I see it, the author oversimplified the password examples to make a point. When it comes to the password length he first made the assumption that your password wasn't in the dictionary. Then he gives us two password examples, the first one is predictable but long, the other one is unpredictable but short, and then he goes on to tell us that the first one is safer which, assuming you are up against a brute force attack, is true.
But the examples are oversimplified and might lead to worse password if a certain group of people come across the post.
P.S. My favourite tip for passwords is not to only have a password that is as random as you can memorize and never, ever, no matter what happens, write it down anywhere.
"Does playing video games at night affect your sleep?"
I'd say it depends on what they mean. On one hand it's obvious that you can't sleep at night if you're busy playing video games, but on the other hand it could help you relax if you play some monotonous game before you go to bed (such as solitaire). Or you could be immune to any possible side effects from games that are related to sleep.
It's an interesting approach, I just wonder how useful it'd be in practice. The fact that it transfers all the data to everyone in the network would be a problem on most battery dependent systems and relying on fixed time cycles seems a bit strange to me unless all the nodes have the same specs.