Yes, it does generate 'excellent' passwords, such as "flatus-pad-numeral-crisply-mustang-jawed-daze-poncho" which is a bit too long for me to type, especially on a mobile phone, or "KC#os~0eH>1Ze8v3~Wk~B:Wc/7W(Wf79" which is impossible to type.
EDIT: I've noticed that including any real words, even ones like th!5, cause a poor rating unless the string is very very long.
I'm going through all my passwords now and changing the field from 'password' to 'text' so I can remove the warning labels.