Again, if it's not the lowest common denominator game code won't be written to take advantage of it.
No, I agree with you. I don't think it will have much, if any application in realtime games. But it can do other things. Fold proteins, for example, 24x7. Or what if it could recompress your MPEG2 files from your PVR/TiVo into MPEG4 for long time storage? That way you don't need more expensive hardware to capture HD in MPEG4 in realtime, the quality can be higher cause you can use multipass compression, and you can save a lot more episodes than you would be able to otherwise. Upsampling media from SD into HD is another use that has been suggested. Also, I think I remember Sony talking about software that would analyse media and sort it based on content. Like it takes all the jpgs from your camera, figures out which ones were from the beach and puts them all in a folder regardless of filename. Your PS3 would not only be the portal to this content, but it could combine the processing power of its cell with, say, the 4 SPE cell in your Cell Storage box in the closet.
I don't know if any of this stuff will ever be common or widespread or if Sony will follow up on it this generation, but the ideas are intriguing.