Landsat frequency is 16 days, you are right. The product itself did not provide an image over the same place at 8 days frequency, only group images from an 8 days period. It has a similar systematization than MODIS (could be to compare some products). In other words, the only thing that does this collection is to group images between this time period.
For example, if I ask for the first month of 1988:
ImageCollection LANDSAT/LT5_L1T_8DAY_NDVI (4 elements, 1 band)
type: ImageCollection
id: LANDSAT/LT5_L1T_8DAY_NDVI
version: 1502750724877455
bands: List (1 element)
0: "NDVI", float ∈ [-1, 1]
features: List (4 elements)
0: Image LANDSAT/LT5_L1T_8DAY_NDVI/19880101 (1 band)
1: Image LANDSAT/LT5_L1T_8DAY_NDVI/19880109 (1 band)
2: Image LANDSAT/LT5_L1T_8DAY_NDVI/19880117 (1 band)
3: Image LANDSAT/LT5_L1T_8DAY_NDVI/19880125 (1 band)
and the first month of 1989:
ImageCollection LANDSAT/LT5_L1T_8DAY_NDVI (4 elements, 1 band)
type: ImageCollection
id: LANDSAT/LT5_L1T_8DAY_NDVI
version: 1502750724877455
bands: List (1 element)
features: List (4 elements)
0: Image LANDSAT/LT5_L1T_8DAY_NDVI/19890101 (1 band)
1: Image LANDSAT/LT5_L1T_8DAY_NDVI/19890109 (1 band)
2: Image LANDSAT/LT5_L1T_8DAY_NDVI/19890117 (1 band)
3: Image LANDSAT/LT5_L1T_8DAY_NDVI/19890125 (1 band)
the DOY of the scene is the same. Therefore, it's possible to make comparations between each pair of images.