I don't think 1 cache for all games makes sense when the BD drive only reads 27mb/sec - which is also why things aren't going to just play off that drive without an install or "caching". I think it's just a large install on this generation of games, little else.
Sure Killzone can be played once you've downloaded (or installed?) 7.5gb, but what if you pop it in and play the 3rd level, something that's not installed/cached because of this theoretical single 50gb cache area? You might have to wait 1-2 minutes for it to install/cache that level. Just doesn't make sense the way I see it.
I expect the reality is you can play Killzone once 7.5gb is installed (~3-4 minutes) and then while you play the rest is 'cached' while you play. If you're downloading it then it continues to download. Just a fancy term for install.

Shuhei Yoshida @yosp
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