Marc Stiegler's essay on Petname systems is a far better introduction (it's listed in the external links). http://www.skyhunter.com/marcs/petnames/IntroPetNames.html

He uses the term memorable rather than human-meaningful, which is a more accurate description I think.

Dictionary words can get mixed up on the phone. I sometimes find myself asking for words to be spelled out when I talk on the phone.