I say looped around as in: the chosen effect, such as Gaussian blur, bleeds through the wall of the entire image/selection as if it were a tiled image, so it would naturally smooth it out. I usually make it a 3x3 tiled image to do this manually, but I feel as if someone would have made a plugin for this convoluted method or I overlooked a feature. (it's hard to show an example of I mean through screenshots, but I hope you understand now.)
I usually use a noise effect along with a Gaussian blur to help make some textures and actually use the second method to make the slightly blurred image.
This actually helps a lot, thanks! Though I wish the effect bled through to the opposite side...
I'll look into these two, thank you!