Correct me if I'm wrong in this. You can't get rid of the processors...the polygons are all still generated by the processor, then fed to the GC where it will texture, shade, etc etc. But the building blocks, the polys, still need to be 'manufactured' by your proc.

What this does is offload as much stuff as possible to free up the CPU to concentrate on making more polys, rather than trying to do a few different things at once. I'm not entirely sure how much physics calculations currently perform. Could be 40% of total CPU, could be 5%. Maybe the game devs will know. What this means is more realistic physics in the future, but right now, I think physics is not a huge part of the total processor usage, and as such performance gains in the real world is minimal.

As with everything else, this will just get better with age. But as it stands, it'll probably take a while before this technology shows significant improvements in speed and complexity.