That's right. The system isn't a lossless compression algorithm. It's designed to give your brain a bunch of hooks to hang interesting snippets onto, which you can use to reconstruct the short story that unravels into a phone number or whatever. For this reason a misspelling or impossibility is just as a good as any other notable attribute, because it makes the story element more memorable.

Taking the article's examples, you might construct a story like "toilet paper is used as socks in Minnesota." It doesn't matter whether that's true. It only matters that it makes it incredibly easy to reconstruct the number 190732.