To be honest, it kinda reminds me of the chiptune, fingerdrumming, controllerism deparment. When you DJ, your main job is to match two beats up so that they don't conflict, everything else (like scratches or effects) is soundactic sugar.
It's not coding the program, it's making them cross compatible.
I'm not clear on your point (the video shows music improvisation, not DJing), but "soundactic sugar" is fantastic.
Of course, "algorithms" (to be honest I don't really know what is happening in the video) and using "traditional" DJ tools aren't really fair comparison -- they're totally different. With DJing the virtue is in the DJ's manual abilities, his technique (among many other things). In this case it's in the programmer's ability to automate a soundsystem.
I should note that modern DJ software is very advanced in the algorithm department though...perhaps the algorave approach is the quintessential hacker mentality of playing with the technical nitty-gritty, whereas modern mixing software remain rather closed to the DJ (an attempt to emulate DJ hardware, I guess).
Edit: whoops, looks like the "hacker mentality" is the whole point. According to http://algorave.com/about/
"These days just about all electronic music is made using software, but with artificial barriers between the people creating the software algorithms and the people making the music."