They're searching a couple of levels deeper. They already have the contents of the page indexed, as well as all the other pages on the site, the sites that link to it, and the sites it links out to. They announced... last week I think it was, that they would now be offering "results within a page." It's not so much a technology innovation, but a business decision. It pisses off a lot of site owners because when Google is indexing the innards of your site it provides an alternative navigation mechanism that is often draped with the ads of competitors.
From what I have read they are allowing sites to opt out.