Researcher says iffy chips could be used

I have to admit, I'm not entirely sure what's behind this Wired News story about what happens to defective chips. I'd like more detail. The basic theory seems interesting, though:
Chip manufacturing is currently very wasteful. Between 20 percent and 50 percent of a manufacturer's total production is tossed or recycled because the chips contain minor imperfections. Defects in just one of the millions of tiny gates on a processor can doom the entire chip.

But USC professor Melvin Breuer believes the imperfections are often too small for humans to even notice, especially when the chips are to be used in video and sound applications.

Is this a cost revolution or the end of digital fidelity?
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