I went and grabbed a bunch of Grimm's fairy tales from Gutenberg.  I
still need to tweak my algorithm some; the most annoying thing I find
is punctuation, especially quoted strings (i.e. speech) so that the
output text looks like there is some valid speech in there and not
just randomly scattered quote marks.

Anyway, here's a sample I produced with my first attempt:

There was a man who kills seven at one blow? I leapt over the tree
because the huntsmen are shooting down there in the closet on the
porch.' The miller said: 'The Devil must go out,' and opened the door
and opened it. As she went in, a little dwarf no bigger than my
finger. And before her stood princes, and dukes, and earls: and the
fisherman went up to her palace all of shining gold; and told her
mother that she must be the handsomest lady in the land; and she went
to the fire and growled contentedly and comfortably. It was not long
in saying 'Yes' to all this; and as they were entering the village,
the son followed the fox's counsel, and without looking about him went
to the other anvil. The old man led him back into the water. The girls
came just in time; they held him fast and tried to free his beard from
the line, but all in vain; he heard or saw nothing of Jorinda. At last
he thought to himself: 'How the old woman is snoring! I must just see
if she wants anything.'


and:

An aged count once lived in Switzerland, who had an only son, but he
was now grown too old to work; so the farmer would give him his only
daughter to her bed-side, and said, 'Always be a good girl, and I will
never by myself leave the path, to run into the wood, till at last
they danced out at the gate together. When they had walked a short
time, when they had warmed themselves, they said: 'Comrade, shall we
have a child, and he grows big, and we send him into the wide world,
and looked neither to the right place. There they found the giants
swimming in their blood, and all round about her, and the bells rang
at each step which she took. Then she was in a great hurry. The little
tailor looked round and saw a flock of sheep, the very shepherd whom
the peasant knew had long been wishing to be mayor, so he cried with
all his might.