I think you've put the enphasis in the wrong place. Instead, if you look at it like this...I’m assuming no; because that would be kind of lame of him to mention something that obvious and trivial. Plus his statement about that, is section off, from the main article. It’s pretty much a section where he spouts the Cells abilities among other things.
You see that Cell is doing a lot. By comparison, perhaps given the amount of geomtery setup and landscape work, Xenon wouldn't have enough cycles spare to run the simulations, animations and AI? And it'd be no more lame to say you're using the CPU to do standard geometry setup than it is to say you're using it to do AI and physics - all these functions are 'obvious and trivial', but being able to do lots of them at the same time is impressive.Eggebrecht: Lair in its current form couldn't be done on 360. We are using large amounts of Cell's SPUs for all of our geometry, landscape, simulations, animations, even troop AI.
I find it unbelievable that they're drawing the geometry with Cell when there's 8 perfectly good Vertex Shaders in RSX waiting to do just that! Why not use them? It makes a lot more sense that they're doing all the setup on Cell, and the rendering on RSX, but Cell also allows lots of other stuff to happen too. Whereas on a conventional processor, the geometry, especially if detailed, can eat into the CPU time and leave a lot less available for other things (though personally I'd like to something in this game that smacks me of amazing AI, physics, detail, etc!)