It’s true you can fake the look given by a tilt-shift lens, and it’s something I have to do because it will be a while before I can afford a tilt-shift lens.
To do this effect you basically have to do several stages for blur and manipulate your photo here and there to squish it up a bit.
But I didn’t do that, I cheated even more than not having a tilt-shift. I downloaded a free action from Designed by Joe.
As with all tilt-shift effects it works best if your point of view is up high.
Of course while this is now a standard use for a tilt-shift lens, it isn’t why they were created. Tilt-shift lenses are actually used to fix the parallax error that occurs when you take a photo of a building from below. You know, how they get all fat at the bottom and pointy at the top. The tilt-shift will fix that for you.