You are almost right: The distribution of letters and length of words is similar to that of the Latin language. But it is not Latin and the text does not make sense. It's gibberish.
“Pencil what comma building twenty section human fedora”
is English, even if it makes no sense.
No, "Lorem" is "dolorem" with the first part chopped off, "adipiscing" and "elit" are mangled non-words, too, and so on.
"Pencil what correct horse battery staple" can be called a sequence of English words. If someone who doesn't know what they're doing writes "ncil what correctando taple", though, then you're no longer in a position to say, "Those are English words".