The idea is that it outlines the three-foot berth legally required in most States (some require four feet), and hopefully makes drivers who are unaware of the laws regarding interaction with cyclists on the road think twice about passing dangerously closely.
I'm not sure the lights would work that way. Out of curiosity I looked up Down Low Glow and Bike Brightz, and they would probably strike most drivers as decorative ("bling," I suppose). But then maybe they unconsciously influence the drivers and make them stay farther away.