Photoshop Elements :: Hiding Object By Blending In Surroundings?

Does any version of Photoshop Elements or Photoshop support a feature that would let me hide a selected region by blending in the colors and textures around that object? 
 
Traditionally, people will copy and paste parts of a photo on either side of an object that they want to hide, but this usually results in a discrete line in the area of the object and close inspection usually shows the object was covered.   I read somewhere that some version of Photoshop has a feature that would try to blend in the surroundings to remove the selected object, which results in a slightly more professional result.