That's what I thought when I first hear this term. It does have to do with mobile design but more over it is much different than the current configurations. This type of design includes module positions with the changing designs and images will re-size when the site is reduced X amount. Not weighing so heavy on the use of the module class suffix for controlling them in the page when it resizes. Or using Alchemy to create different designs for each browser dimension.
This goes back in time a bit to the fluid designs that really began todays modern websites. Moving away from tables and to more modular fluid designs.
To give you an idea of what I mean by this have a look at the following page. Take your browser and resize the page and watch what happens to the content. I really hate linking to a competitor website here and I don’t even use this developers designs (So Sorry Gavick;) but really this design is simply beautiful and shows exactly what can be done with responsive design.
http://bambootheme.com/showcase/nov11/Here is a developer that is doing this on his own but this site does not give you the full effect of what is possible.
http://internet-inspired.com/blog/css-a ... b-template