This is huge.
One practical application is fast recovery of a file from past snapshot without using any additional space. I use ZFS dataset for my vCenter datastore (storing my vmdk files). In case of need to launch a clone from a past state one could use a block cloning to bring past vmdk file without the need to actually copy the file - it saves both space and time to make such clone.
They're likely using a NAS (e.g., FreeNAS/TrueNAS) that uses ZFS for the underlying storage then sharing that storage by either NFS or iSCSI with their vSphere cluster. In some rare cases FC is being used instead of NFS or iSCSI.