The reason for this is to mix the inputs between multiple outputs. This makes it harder to see where a coin is coming from and where it is going to.
A better explanation is to come with the release of the white paper
Ah ok so the time thing is a mixer sort of speak would of been simpler to say liek washer or mixing unit lol. Now I understand lol..
Also in regards to the POS how long does it take for coins to start generating?