I quickly solved the retyping problem:
+^k:: ; SHIFT+CTRL+K converts text to capitalized
Clipboard := ""
SendInput, ^c ;copies selected text
StringUpper Clipboard, Clipboard, T ; Title mode conversion
This Hotkey mostly fixes the all-caps text by converting every word to initial caps. However, I did need to revert some prepositions and connectors to lowercase as appropriate (e.g. And ⇒ and, For ⇒ for, To ⇒ to, etc)