This article claims this algorithm is very likely happening inside my computer right now, but it doesn't elaborate. Why would my computer be performing this algorithm?
Some processors have a hardware random source. Due to manufacturing problems these are usually biased, but can still be used because of this algorithm.
Randomness extractors are used widely in cryptographic applications, whereby a cryptographic hash function is applied to a high-entropy, but non-uniform source, such as disk drive timing information or keyboard delays, to yield a uniformly random result.