The Deconstructor page has letters flying around algrithmically following your cursor. While not quite an algorithmic generator, a lso recommended are Allen Toney's related extraordinary pages at the threshhold of anxious dreams. Again not quite an algorithmic text generator, in the online divination section of the comprehensive I Ching On the Net page you can get a new reading each time the relevant page is reloaded Secondly, some downloadable software exists . These are essential for creating or algorithmically arranging longer pieces. The rest of the Burning Press site also has much of interest.
Site also has lots of text examples and other info.
There is a pay upgrade available too. Also at the site is info and text examples of the output. Foggy, a simple text generator, is downloadable from here . A shareware anagram generator is downloadable at Kim Moser's Anagram page .