Also referred to as Dunbar’s Number is a theoretical limit of the number of intimate connections that one is able to make. Granted, the science behind it is sketchy at best (it was extrapolated from the brain size difference between humans and various other primates), but it is a good example of how the brain is limited.
There are two parts to this post. The first is an example from Freakrevolution.com about The Monkeysphere. Pace gives a very succinct explanation of what the Monkeysphere is, but, more importantly, the importance of its application.
See, one way that people have come to accept gay people is that their monkeyspheres are now filled with more gay people. It is hard to vote against gay marriage when they have good friends who are gay, and who want to get married. I posted as a comment (in another forum) that it was the best reason for outing oneself to the world. The more freaks, bisexual, kinky people etc. that someone knows, the more likely they are to be tolerant to those other more abstract people.
The second is that I am now making an argument that the Monkeysphere is about ideas as well. One can occupy a few slots of their monkeysphere with abstract ideas. This is not as effective at social change as actually knowing someone, but can be helpful in creating a sense of community.
As an example, I have a few slots in my Monkeysphere for the positive sexuality community in New York City. I could recognize quite a few people at the party, and much more by name rather than face. It was funny.
“Hey, I am Max”
“Are you on Twitter as @maxlagos ?”
“Yup, thats me!”
Funny exchange, and it happened a few times. I met a guy that I had known from LJ for quite a while. I met people who knew me from Twitter 
Monkeyspheres encompass a number of people that are not directly involved in someone’s life, but yet make an impact. And this is the power of social networking and the internet.
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I long ago made the assumption that I pretty much look like most Southeast Asians in the NYC area (when I lived in Queens, I would often be confused at my local diner for someone else), so I’m often surprised when people recognize me from online venues.