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Modular software refers to the internal architecture of the system and its ability to be divided into cleanly separated subsystems. A car is a modular system: if you need to replace the gas cap, then you don't have to take apart the motor.
Software that is designed to run on multiple processors is called 'distributed'. Distributed systems are more complex to architect, engineer and maintain. They can be very robust to single point failures. They can also be very fragile when there are 'genetic' failures as all nodes may be running the exact same code and have the exact same bug. Routing protocols are the best example of distributed systems that work (FSVO work).
The ability to run code on a processor in the system that is not 'live' is of dubious value. If it is not in production and influencing the behavior of the system, then it is not truly being tested. This is not violently different than having a separate router that just isn't passing production traffic. It does make a fine mechanism for debugging the infrastructure of the distributed system and it sounds like Cisco is trying to market its debugging tools. I wonder how many customers are going to care.
Third party software running inside a router is a concept that has been explored before and generally found lacking. If the application doesn't affect the behavior of the router, then it doesn't really need to be running on the router and there are frankly much cheaper ways of supporting the application. If the application does affect the behavior of the router, then it is likely to be tightly coupled to the hardware of the router for performance reasons and will hardly qualify as 'portable' and able to take advantage of the distributed nature of the HFR control plane simultaneously. The area where it is possible to provide third party enhancements are functionalities in the control plane, such as signaling protocols. These generally don't require a separate processor anyhow.
Tony