1. A method for distributed caching of information using extended caching optimization, the method comprising: at a mobile device for operating in a wireless network, the device including a local proxy for monitoring requests issued from an application located within the device to an external entity not located within the device and for storing, in a local cache, responses to the monitored requests received from the external entity: identifying a request as one that meets a first criterion for optimization; and in response to identifying the request as one that meets a first criterion for optimization, applying an extended caching optimization, wherein applying an extended caching optimization includes: preventing the identified request from being transmitted to the external entity; and providing a response to the identified request from the local cache.