Ok so.. I think i figured it out. To anyone else who might be curious about this, here you go. (Please correct me if I am wrong)
A stream processor only needs to perform specific operations (such as vertex operations, geometry operations, and pixel operations working with floating points), where as a CPU is designed to perform a series of extensive operations and arithmetic simultaneously.
Don't quote me on this but I believe a single stream processor can perform more operations per clock cycle than a CPU.
The reason that so many stream processors are required to get the job done (ie the newer cards like the 4870 has 800 stream processors) as opposed to 1 CPU on a system is because some software (mostly intense graphical games like Crysis Warhead) requires the GPU to perform tons of these operations at once.
Now really quick, as i said earlier the Radeon 4870 advertises 800 stream processors, while the GTX 280 advertises 240. I was a bit confused about this too, but what I think is Nvidia's stream processors are a bit more powerful than ATI's. I also think that ATI may be advertising each processor as if they were 5 (logical units) because each stream processor can perform 5 operations per clock cycle. So in ATI's language, the GTX 280 would equal 1200 (240*5)
So using CPUs on a video card would be a total waste. There is the reason why the price of 1 CPU is around the same price as a video card containing hundreds of stream processors.
AGAIN- I am not saying this is correct, this is how I perceive it. If you know this is wrong, please enlighten us with your reply.