Flash (and other) video compression uses a similar algorithm to look for parts of a video that are more static. (To avoid re-sending information about a static background, for example.) I'd guess it's a modification from compression technology.
to avoid re-sending information about a static background for example. I wonder if they built theirs from scratch or just modified
it would be cool if the sprites had some ballistic motion after they were spawned... with velocity based on the initial direction of the delta that spawned the sprite + some gravity, maybe some turbulence and random lifespans and size changes.
I've had too many years making particle effects....