Really. Thats pretty incredable. I'm not a Mac guy myself, but is there special software that tells you how many cycles the battery has been through? Also are the cycles full discharge cycles or does a cycle count when you unplug the laptop for 10 minutes then plug it back in?
The macbook batteries have a very advanced built-in protection circuit. It includes a temperature sensor, acceleration sensor (I'm not sure why it needs that, LOL), etc.. The battery records all kinds of info about its usage, and that includes charge/discharge cycle. It also pays attention to the current draw and how long it lasts at what draw, which allows it to calculate its capacity every time do you use it. Also, those 700 charge/discharge cycles are calculated like this-
50% of the battery is used, then plugged back in.
35% of the battery is used, then plugged back in.
20% of the battery is used, then plugged back in.
That is 1.05 cycles (I think). Plugging and un-plugging do not change the number of cycles.
It records all of this stuff, and the computer has access to this information. I use iStat pro (a dashboard widget) to check my battery.
"Health" corresponds to %capacity. It will read "0%" if the battery is shot (I've only heard of that happening once-after my friend spilled water on his macbook).
The tilt sensor in the battery is especially cool, I've made a couple really cool screensavers with it.