It is based on a general mission lots of development environments are on; making products faster and easier to use.
Algorithm 2 seems pretty quick at making simple programs but probably lacks a lot of flexibility.
Programs like that would probably become very popular similar to Game Maker if it helps more with developing other kinds of software of practical use. Game Maker is popularized for similar reasons and there are many competing game development environments for non-programmers.
Making programs without a programming language is something lots of products try but end up limited in doing. Most of these products end up very specific in what they produce. For example, Game Maker limits users to template based 2D and 3D games where the unique, user defined aspects of the program is limited to configuration and generating data used in the games.
If you want some related information, look up visual programming, and visual programming language