For example, if you have a displaced sphere and a mirror, and trace displacements is Off, the sphere's reflection won't have displacement. edit: The sphere as seen directly has displacements, its reflection does not.
Now if you imagine the mirror is also displaced and/or it has soft reflections, it's easy to see how a reflection of the displaced sphere is completely unnecessary.
This is a very useful thing to have for optimization purposes.
Normally to achieve this in mantra I have to go about creating phantom duplicates of existing geometry with the displacement turned off and set-up complicated scope relationships between objects. This is very necessary because I know from experience that render times can go from an hour to a few minutes, with little if any visual degradation…
However, the setup is a mess… it's difficult for the scene creator to have a good mental picture of what is going on, and as you can imagine way more difficult for another artist to work with.
Mantra should have this… With the addition of being able to turn On/Off Self-trace-displacements. What this would do is allow the displaced sphere to self reflect/refract/shadow/occlude, but any rays from other objects are seen with no-displacement.
90% of the time tracing of displacements isn't needed at all, unless objects are touching, intersecting, or needs to trace itself.
puurrrrlease

cheers
Sergio