I'll add a simple version for everyone too.
When you hold a PVS-14 up to your eyes, while looking at something, the image moves slightly. If you want to see this, put a camera on a tripod, looking at something, then put a PVS-14 in front of the camera and notice how much the object moves on the screen.
If you have two PVS-14's, the error could be quite random, and then this means your eyes may have to point in slightly different directions, like a chameleon, so that you can have stereo vision. This can cause damage to children's eyesight and eyestrain in adults.
Collimation doesn't eliminate this error, but it does get both monoculars on the same plane, with the same vertical error. This reduces eyestrain as our eyes are much better at dealing with a small difference in the X axis than they are at dealing with difference in the Y axis - Or worse, both.
David