It's following what the code you posted does.
aka take a number of random points and find their distance to a closest other point. Finally just keep the closest of them all.
In the capx it just creates a bunch of sprites, and destroys all but one.
Sorry, but I'm not seeing that it does. In your example (viewing in IE), if I change 'Repeat 200' to 'Repeat 24', I'm still seeing ~200 objects, and if I further change the project window size to 1280, 960, I'm seeing over 800 dots which are still spawning after over a minute. This isn't a behavior I understand, expect or want.
The code I posted returns the furthest candidateDot of var "sample" = 50 randomly generated dots from the nearest placed dot 'control' (in placedDots [ ]). I'm of the opinion that building (and saving) that placedDots array first, then drawing/spawning from it lastly (or separately, later), might be a better approach than creating/destroying sprites.
FYI for anyone interested, an example of Bridson’s poisson-disc sampling method I linked to in last post. Supposedly more efficient and tightly-packed.