A person who does not wash his penis often, and so provides a breeding ground for smegma loving bacteria, hence the cheese.
Can also be used to describe:
Terry has become an I.T. employment agent, what a cheesedick!
"Small Town Inbreeding Reverse Evolution"
This happens all too often in shitty little provincial ex industrial towns, particlary where there is high unemployment and lack of local expenditure. Basically anyone with half a brain cell leaves for somewhere better as soon as they are old enough to leave home. Nobody ever moves there because things are better elswhere. Only people who are too retarded to get a job anywhere else remain. They then sign on, breed amongst themselves and produce even more retarded offspring and so the cycle continues. Evolution in reverse so to say. Common situation in many parts of northern England. In years to come the local inhabitants may physically devolve into lower level life forms such as fungi or plancton.
I wouldn't move there if I were you, the place is STIRE!!