The purpose of that service is to recognize when new video outputs are being 
connected, and to call
xrandr --output $yourNewVideoOutput --auto
when that happens, i.e. to automatically enable the monitors that you connect.
You would want to enable it again when manually configuring your display(s) is 
not sufficient for you.

-- 
Screen flickers or blanks every 10 s with KDE4
https://bugs.launchpad.net/bugs/278471
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