It is a cool tech demo to demonstrate mod play yes. While I know it was never intended to be an actual app it could be the basis for one. The sound volume is a bit too low though, I had to have the volume at max to hear it good.
A full blown MOD player could be made that would allow you to load any mods and then play them in the background while displaying a graphical effect such as this. When a button is pressed a different effect could come up like vector dots, BOBs, rasters, plasma, etc. They could even change to the music kind of like those old Amiga demos
There are just a few demos for GP32, the ones avaliable are:
256goats v1.10 by noice
baardei by aardbei
Goat Park 32 by mithris
Inner Spirals by jum
Minimalistic Crap v1.00 by sdw
Test23 -Fixed Version- by hitmen