They are only dimly aware of what's going on around them and shut out stimuli which they judge to be "boring" or "irrelevant to me" in favor of their familiar, unchallenging stimuli. It should be embarrassing, but somehow it's socially acceptable to be the equivalent of the guy who shows up to conference without doing the reading because he was playing WoW all night.
I went to RailsConf with a coworker like this and although I like her personally, she spent one of the more interesting sessions reading web comics and remarked "Wow, that was boring" afterwards. Well, yeah, you tuned out in the first 3 minutes.