It's the mod VbSEO that does this if I'm not mistaken and I can't really say how it does but as for the human friendly links as far as I have it understood it doesn't really make a difference to google (I say google because who the hell cares about the other ones?) since they do checks on content and the tags but it makes it a hell of a lot easier to see what the web page is actually about to a reader who happens to look at links.

__________________
"What everyone seems to forget is that while knowledge certainly is something - it's the implementation of knowledge that brings power" - Andres Galindo.