What it is
The Smale conjecture, proved by Hatcher (1983), says that the diffeomorphism group of the 3-sphere deformation-retracts onto its isometry group: Diff(S3)≃O(4). The generalized Smale conjecture makes the same claim for every spherical space form S3/Γ. Earlier work settled many cases topologically. Bamler and Kleiner proved it for all of them, with a new proof for S3, using Ricci flow.
The idea is to feed a whole family of metrics into Ricci flow and let each one flow to the round metric. That needs a flow through singularities that is canonical and depends continuously on the initial data. Kleiner–Lott's singular Ricci flow, and Bamler–Kleiner's uniqueness and stability theorem, supply exactly that. The same method shows that the space of metrics of positive scalar curvature on a closed 3-manifold is contractible if non-empty, improving Marques's path-connectedness theorem. It also computes the homotopy type of diffeomorphism groups of many other prime 3-manifolds.
Why it matters
These results show Ricci flow working as a tool in topology after the Poincaré conjecture, on questions about families rather than single manifolds. They depend on the finest parts of the 3D theory: the classification of κ-solutions and the uniqueness of flows through singularities.
Where it stands
In dimension three the remaining cases are largely handled by combining these results with topology. In higher dimensions the picture is very different. Watanabe showed that Diff(S4) is not homotopy equivalent to O(5), disproving the 4D analogue of the Smale conjecture. Ricci flow cannot yet act on families in dimension four, because flow through singularities there is not understood. Spaces of positive-scalar-curvature metrics in higher dimensions are studied mainly with index theory and surgery methods.