How to filter a dictionary according to an arbitrary condition function?

You can use a dict comprehension:

{k: v for k, v in points.items() if v[0] < 5 and v[1] < 5}

And in Python 2, starting from 2.7:

{k: v for k, v in points.iteritems() if v[0] < 5 and v[1] < 5}