The BlinkLayout is an inner class of the LayoutInflater and can therefore only be used in a XML layout that will be parsed by a LayoutInflater instance. Due to the implementation it's only possible to use it as root node using the <blink> tag inside a XML layout.
It seems like the BlinkLayout is available since Android 4.0 and isn't used in the Android source code I observed. Maybe it was added for debugging reasons and was forgotten later.
The video above shows the BlinkLayout in action using the following layout XML: