V-Block: Is this the beginning of Hypervisors embedded in Hardware?

With the announcement of V-Block and Cisco UCS as a major component, is more hypervisor functionality going to end up in hardware? UCS adds some interesting features into the hardware that were traditionally within the purview of the hypervisor. Now it looks like V-Block is the assembly of myriad components that taken as a whole look remarkably like the beginnings of a hardware based hypervisor.

EMC/Cisco/VMware vBlock – The Data Center Virtualization Perspective

Well the cat is well and truly out of the bag now, after several months of serious courting and getting caught behind the bike shed a few time, the worse kept secret in IT has arrived. Cisco, EMC, and VMware have entered into a joint venture arrangement called V-block, so what is it and how exactly does it affect the state of play?