The problem there is that if they get a plain text password it might be determinable, also there's too much secondary issues.
A better password algorithm is something like preface the passwords with something like #1 (for the alpha numeric requirements) and then invent a word alphabet for the letters like various animals. So say you take the last three digits of the site name. Here DOT, you'd have a password #1DogOstrichTurkey -- It would be unhackable, hard to figure out how you made it, and you'd be able to dodge those alphanumeric and capital lowercase letter issues. Site unique and with enough bits to make take a few hundred years to brute force, and you'd never forget it.
* For those curious, no I don't use a password anything like that don't fucking bother.