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Remember, he said put it all in the S&P 500 and average 10% per year so you can take 8% and never run out. It comes down to sequence of returns. It you retired in 2000 the S&P 500 would have dropped 10%, then 13% and then 23%. Over that time, you pulled 24%. In that case Ramsey's 8% rule blows up in your face and you run out of money.
Others retired back in 2000 and said they could get 5% a year in a CD so they would live off that 5%. Then CDs dropped to .5% and stayed low for decades. Those people also ran out of money.
IMO, the key is to invest in a mix of dividend paying stocks, high yield bonds and REITs. A mix of those would have yielded a good 5% over pretty much any timeframe. The key is to take slightly less than your dividend payout, say 4.5%. Then keep reinvesting that .05% back into buying more shares which allows you to give yourself raises over time and keep up with inflation.
I have been building portfolios like this for 30 years. It has never let me down and is the same plan I will use when I retire. The key is to rely on the income and not rely on price appreciation. That keeps you out of trouble when markets sell off.
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