I am simultaneously baffled and intrigued. Not sure I really understand the point of this, but it's interesting and I admit I zoned out watching them get all bunched up, lol.
I'm glad it held your attention! There's no point, really; it's just a screensaver that illustrates group dynamics. It works well as an analogy for dating within social circles, competition within markets, diplomacy between nations, and so on. The distance between the sprites is symbolic of unfamiliarity, market saturation, and exclusivity of interests, respectively.
Originally, I programmed it as a way for characters to target and pursue enemies in an RTS game, but found, to my amusement, that by switching the 'pick closest' function to 'pick farthest', it ended up looking more like a fast-paced dating sim. Ultimately, it was both: it was equally representative of the diplomatic failures leading up to warfare and the hostilities that result from dating the same people as your friends.