I think it is interesting because it reveals a couple things. First, that most of the content we find essential to the image is in the low-frequencies (the high-cut slider can be moved very far left before the image appears altered). Second, it demonstrates that a sharp cutoff of frequencies results in ringing (oscillations) in the image (the opposite is also true -- a sharp edge in the image will produce oscillating wavelength magnitudes in the frequency plot).
This method of removing wavelength-related content (called Fourier Filtering) is very precise in terms of cutting out specific frequencies, but the effect can be undesirable in terms of producing images that appear smooth and artifact-free (no blemishes). If you want to produce a smoother image which has certain periodic content removed, you would have to filter it out gradually in the Fourier representation (called filter "roll-off") instead of a sharp cut-off.
This demo:
1. Performs a Fourier transform on some image pixels, taking the pixel data from the "time" domain into the frequency domain. (Think of time as "how far through the image we are", and the pixel's intensity as the signal's magnitude; frequency in this case becomes a slightly abstract concept.)
2. Visualises that frequency domain in various ways - by default you're seeing the magnitude of the transformed signal
3. applies a band-pass filter to that frequency domain - i.e. only allowing signals above a certain frequency (low-cut) and below another certain frequency (high-cut), and removing the rest. Playing with this might give you an intuitive notion of what "frequency" means here.
4. applies the inverse transform, giving you a signal back in the time domain (i.e. a normally viewable image).
You can see what the effect of bandpassing the frequency-domain signal is on the end result. Thinking about it in terms of Information, if we band-pass half of the given frequency spectrum out, we're essentially throwing away half of the Information... but yet the image is still useful to a human (this is the principle of how lossy compression algorithms work, as others have noted).
[0] In the case of a "perfect" transform, in reality most algorithms are lossy
Edit: https://en.wikipedia.org/wiki/Hybrid_image
Are those worth a thousand words?