Not heard of that term (the AI related subjects are in the fourth or fifth year - I'm in the second.
), but having looked it up I'm roughly familier with the concept, yeah - tis awesome. I've tried implementing very primitive versions of it in garrys mod via the wire mod - building AI fighters that sought out and attacked bots and players.
At the highest layer the fighter would pick targets in a targetter chip (chips are like little processer units where you have inputs, LUA processer scripts and outputs). It would pass the target location to a navigator chip which figured out which direction to go, and then passed that info on to a pilot chip which figured out how to fly the 'plane' (prop with thrusters) to do that.
It had tons of odd bugs, but the golden moment was when it decided to run my friend over rather than strafe him as usual. I was so proud.
There's a good article about that talks about how that type of system was implemented in the Halo games AI systems if you're interested: http://aigamedev.com/reviews/halo-ai
(Though to be honest I have no idea where I got that link from. Might even have been these boards.
Edit: Arggh, now you've got me thinking about it, I can't stop.
*goes to build new robots in gmod*