To be as close to the algorithm as possible, I would probably do something like this:
v =: 3 2$ 0 0 0.5, (2 o. 0.5), 1 0
ps =: 1 2 $ (?3) { v
next =: 4 :'y,((?x){v) -:@+ ({: y)'
ps =: (3&next)^:20000 ps
'point' plot ({.;{:) |: ps
but your version is much more efficient.