With 2 gigs of physical memory and a ~1 gig commit charge, x64 XP's built in task manager reports that I have a system cache size of slightly over a gig. Ok, this makes sense, I suppose I've got a few ...
Clearing cache may something that a person will do for their computers and web browsers, with most having this feature available for the Android devices on their storage controls or recent apps.
Your apps and web browser store bits of information to speed up your experience using them. Over time, your phone may collect a lot of files you don't really need ...