Adam, I love the new quote generator. This is a dream that a colleague of mine had 20 years ago, to be able to annotate texts (in his case, Old Norse) in some kind of format that would enable the original version to be preserved clean, but the annotated layer to exist over it. I think this has something to do with what Mike did with fedwiki.
What your quote generator now does is add a further layer of serendipity to the way the highlights are discovered, a kind of quote roulette, but we're still stuck with that problem of what gets chosen for highlight in the first place.
When I teach I mention to students that something interesting happens if they highlight when they read--the next time they read, they only see the highlights. They might as well have applied whiteout to the rest. I learned this myself and now I force myself not to highlight. It's a kind of deliberative inefficiency, and I'm not sure I'm convinced by it, but it's to do with a worry about the "verses out of context" issue that isn't fully resolved by adding back the context -- if the context is still seen more faintly, what gets overlooked.
I so appreciate this demonstration, and I want to spin for quotes all day.