What is confusing you, I think, is just where "this" is really coming from. So bear with me-- here is a very brief explanation that I hope will make it quite clear.
In JavaScript, what "this" refers to within a function is always determined at the time the function is called. When you do:
jimmy.nap();
The nap function (method) runs and receives jimmy as "this".
What objects have references to nap is irrelevant. For example:
var jimmy = {}, billy = {};
jimmy.nap = function(){ alert("zzz"); };
var jimmy_nap = jimmy.nap;
jimmy_nap(); // during this function's execution, this is *NOT* jimmy!
// it is the global object ("window" in browsers), which is given as the
// context ("this") to all functions which are not given another context.
billy.sleep = jimmy.nap;
billy.sleep(); // during this function's excution, this is billy, *NOT* jimmy
jimmy.nap(); //okay, this time, this is jimmy!
In other words, whenever you have:
var some_func = function(arg1, arg2){ /*....*/ };
// let's say obj and other_obj are some objects that came from somewhere or another
obj.some_meth = some_func;
other_obj.some_meth = some_func;
obj.some_meth(2, 3);
other_obj.some_meth(2, 3);
What it's getting "translated" into (not literally-- this is pedagogical, not about how javascript interpreters actually work at all) is something like:
var some_func = function(this, arg1, arg2){ /* ...*/ };
// let's say obj and other_obj are some objects that came from somewhere or another
obj.some_meth = some_func;
other_obj.some_meth = some_func;
obj.some_meth(obj, 2, 3);
other_obj.some_meth(other_obj, 2, 3);
So, notice how extend is used in the example on that page:
UniversityPerson = Person.extend({ /* ... */ });
Pop quiz: When extend runs, what does it think "this" refers to?
Answer: That's right. "Person".
So the puzzling code above really is the same as (in that particular case):
var prototype = new Person('no_init');
Not so mysterious anymore, eh? This is possible because unlike in some languages,
a JavaScript variable-- including "this"-- can hold any value, including a function such as Person.
(There is nothing that makes Person specifically a constructor. Any function can be invoked with the new keyword. If I recall the exact semantics, I think they are that when a function is called with the new keyword, it is automatically given an empty object ({}) as its context ("this") and when the function returns, the return value is that same object unless (maybe?) the function returns something else)
This is a cool question because it speaks to a pretty essential part of JavaScript's neatness or oddness (depending on how you see it).
Does that answer your question? I can clarify if necessary.