This doesn't actually solve the problem of storing the resulting URL, and the added encryption can be brute forced trivially.

The author also makes the assumption that only entering the first few characters of a seed word (which is enough for the site to tell which word it is because the dictionary is limited) is effective at thwarting keyloggers. It isn't. If the site can infer which word you mean based on the first few characters, so can the attacker.