Okamoto refers to this as cells, but I think this is all a part of the Grid Computing initiative that is being put forth. They are planning on putting more networked intelligence into their products, and this will in turn give them access to more computing power locally. Not using your PVR? It helps optimize the back end of the game you are playing. Likewise, if you are recording a show, and not playing a game, the spare cycles of your gaming system will be available to help out with insuring that there is enough memory available to keep from dropping frames. Instant replays and save games from your PS3 will be saved to your PVR, which is networked, so you can play your customized characters from a friends house as long as they too are connected.
Sources: GridFrastructure Releases Grid Tools For Linux PS3 and Grid Computing More From News.com Okamoto's GDC Address