But the point is that you don't control the website's hashing algorithm, or whether they hash at all, or whether they store their hashes in a public s3 bucket. They may tell you what they do, they may not. But you have to trust them either way.
A long random password using a variety of characters is the only control I have when setting my password. If they have a good hashing system and protect their hashes, my long random password will not hurt anything. If they truncate my password before hashing, it will still be the best password I can make for that app.
If I use 5 5 letter words as my password and they truncate after the first 10, how would I know? My password might be "horseapple" instead of "horseapplehappygreennymph".
If I give them 10 alphanumerics and they leak their md5 hashes, I'm pwned in a few days, assuming they even salt it.
If I give them 20 random alphanumeric+symbol then I can't imagine what exotic thing they could do wrong to make it less safe than any other password I choose.
I might make an exception for some streaming service that I have to enter by hand on a tv remote control, but otherwise i am going to generate it with max entropy because I am never going to look at it anyway.