(x1*i + y1*j) * (x2*i + y2*j)
as some deep mysterious thing, but its just the same FOIL polynomial multiplication you learned in freshman algebra:
(x1*i + y1*i)(x2*i+y2*j) = x1*x2*i*i + x1*y2*i*j + y1*x2*j*i + y1*y2*j*j
= (x1*x2 + y1*y2) + (x1*y2 - y2*x1)*i*j
The quantity in the first parenthesis, above, is the our old familiar dot product. The quantity in the second parenthesis is our old friend the cross product, but expressed in a new dimension whose basis is i*j, and which--unlike the cross product--generalizes to any number of dimensions. In GA its called the "wedge product".
Once you "get" that, you find that doing things like deriving rotation formulas, etc, become easy, because you can apply all the skills you developed in algebra to solving geometric problems.