> I guess my question is why. This is obviously not a piece of software anyone will ever use.

My best theory would be it's something that was built as like a novelty/proof of concept, that a current state of the art LLM can do tedious tasks like assembly on a ridiculously old/low resource platform and turn out something that actually looks coherent. I don't personally know a lot of people who enjoy building large things in assembly but LLMs aren't bothered by doing tedious tasks. Due to the tiny size of the thing it can probably very rapidly iterate on "this doesn't work, change a thing, run it again" thousands of times.