Bruce Schneier was wrong about MtE. This isn't so much a matter of opinion as it is (a) the currently prevailing theory in academic cryptography, at least when it comes to generic composition, and (b) the clear verdict of the last 10 years of crypto vulnerabilities.
Just writing this to be clear: it's not a debate. Ignore Schneier on this. In his defense: the most notable things he wrote about MtE were written before this was well-understood.