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PSoC 1 has the unique capability of 'Dynamic Reconfiguration'. It means that a single resource can be used to perform multiple function. We can consider a cold drink vending machine for example. Majority of the time it has to perform as a vending machine chucking out cans and collecting money. But at night, for some time it has to act as a communication device to send various details such as inventory status, sales data etc. For any other microcontroller seperate resources are required for the two jobs. But in PSoC 1, a single resource can do both the jobs using Dynamic Reconfiguration. This enables the user to use a lower end part having lesser resources thus achieving cost savings. More information can be found in application note AN2104
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Although a little "aged" still useful, a training video -
http://www.cypress.com/?rID=1085
Regards, Dana.