Effect of local avatar texture storage? And thanks.

In a recent posting, Kelly Linden mentioned that baked avatar textures are now being stored locally (I assume on a users home sim) and then routed to the users current location? Do I have that correct?

If I don't, I'd love a more detailed answer. I appreciate that you are busy, but it is a topic that is very interesting to many users for its future implications regarding asset distribution.

Additionally I'd like to know exactly what impact in terms of texture loading times and whatnot you expect this modification to have.

Finally, thanks for your work on this. I know that asset distribution is becoming a critical problem as new users pour into SL, and reengineering some fundamentals of SL is critical for the grid's survival. I also realize that this reengineering is going to cause some hiccups along the way. But I'm hopeful that the outcome will be worth the short term pain.