It is correct according to most commonly used guidelines for headline capitalization. You were describing how to capitalize stuff in a paragraph, not a headline.

http://www.grammarunderground.com/capitalization-of-headline...

Well, I stand corrected. Dang.

Still pretty popular in newspaper land. Despite your protestations, both the NYT and the WSJ websites still use title case.

https://en.wikipedia.org/wiki/Letter_case#Headings_and_publi...

http://www.nytimes.com/2014/09/19/technology/larry-ellison-s... http://online.wsj.com/articles/larry-ellison-to-step-aside-a...

P.S. The other three sites I checked (LA Times, USA Today, and Washington Post) websites do not.

>Headline capitalization is pretty easy: Capitalize the first word, then any proper nouns. That's it.

Not really accurate. Some publications use sentence case for headlines, but most publications use (and most style guides suggest) title case.