Well, then Peter was wrong, although I never read that in his book.
My Cephalotus is growing abundantly and it looks like you got it's own growing chamber. I have never seen a Ceph without pitchers before and it makes even a pretty non-pitchering plant! Just goes to show you, Cephalotus follicularis is just that wonderful. Should have petals for it's flowers though, :-/
I suggest boosting up humidity, and yes, watering your plant more because the top of the plant mix seems to have compressed as mentioned by Spectabilis.
Also, you could throw in some spaghnum moss around the growing chamber of enclosed area and make sure it's damp as it will generate a lot of humidity, so will the occasional misting.
Despite the lack of pitchers, it's still a nice plant.