Do you mean the particular song or the whole double album? It would not be surprising if it were one of his lesser works, cos most of it was not intended to be released on commercial recordings in the first place. He was, as you indicate, not taking it too seriously, but just mainly having a good time jamming with the guys in the Band, and I think you're dead right about him "string(ing) words together sometimes just for the sound of the words and not primarily for the meaning".

I also regard the album as a lesser work, but with a few jems, and an overall rather appealing sound.

Don't Ya Tell Henry...