I just opened the Password app for the first time to look at the generator. It seems like the pattern is: [a-zA-Z0-9]{6}\-[a-zA-Z0-9]{6}\-[a-zA-Z0-9]{6} with exactly only one uppercase char and one digit. I don't want to do the maths but that looks like a lot of removed entropy.
Fully random: 62^18 in that format, or about 107 bits of entropy.
Their approach: ~71 bits per the article (I counted ~73 bits but I’m not using their exact algorithm)
I’d say it’s not too bad. With a good password hashing algorithm you’re looking at nearly 2^100 operations to bruteforce their passwords, which isn’t going to be feasible anytime soon. (Even with a crappy hash algorithm it’s still going to be over 2^80 operations).
And, in this case, that entropy trade off means the passwords are easier to remember and type in, making it more likely for humans to actually use those passwords.
Nit, 160 bits of entropy would be if you could get 8 bits per character, but that’s highly unrealistic. 6.0~6.3 bits is more feasible based on what most websites will tend to accept, which lands you at around 120-126 bits of entropy for a fully random password.