The Total Perspective Vortex derives its picture of the whole Universe on the principle of extrapolated matter analyses.
To explain- since every piece of matter in the Universe is in some way affected by every other piece of matter in the Universe, it is in theory possible to extrapolate the whole of creation- every sun, every planet, their orbits, their composition and their economic and social history from, say, one small piece of fairy cake.
The man who invented the Total Perspective Vortex did so basically in order to annoy his wife.
Trin Tragula- for that was his name- was a dreamer, a thinker, a speculative philosopher or, as his wife would have it, an idiot.
And she would nag him incessantly about the utterly inordinate amount of time he spent staring out into space, or mulling over the mechanics of safety pins, or doing spectrographic analyses of pieces of fairy cake.
"Have some sense of proportion!" she would say, sometimes as often as thirty-eight times in a single day.
And so he built the Total Perspective Vortex- just to show her.
And into one end he plugged the whole of reality as extrapolated from a piece of fairy cake, and into the other end he plugged his wife: so that when he turned it on she saw in one instant the whole infinity of creation and herself in relation to it.
To Trin Tragula's horror, the shock completely annihilated her brain; but to his satisfaction he realized that he had proved conclusively that if life is going to exist in a Universe of this size, then the one thing it cannot afford to have is a sense of proportion.
A towel is about the most massively useful thing an interstellar hitchhiker can have. Partly it has great practical value. You can wrap it around you for warmth as you bound across the cold moons of Jaglan Beta; you can lie on it on the brilliant marble-sanded beaches of Santraginus V, inhaling the heady sea vapors; you can sleep under it beneath the stars which shine so redly on the desert world of Kakrafoon; use it to sail a miniraft down the slow heavy River Moth; wet it for use in hand-to-hand combat; wrap it round your head to ward off noxious fumes or avoid the gaze of the Ravenous Bugblatter Beast of Traal (a mind-bogglingly stupid animal, it assumes that if you can't see it, it can't see you- daft as a brush, but very very ravenous); you can wave your towel in emergencies as a distress signal, and of course dry yourself off with it if it still seems to be clean enough.
More importantly, a towel has immense psychological value. For some reason, if a strag (strag: nonhitchhiker) discovers that a hitchhiker has his towel with him, he will automatically assume that he is also in possession of a toothbrush, washcloth, soap, tin of biscuits, flask, compass, map, ball of string, gnat spray, wet-weather gear, space suit, etc., etc. Furthermore, the strag will then happily lend the hitchhiker any of these or a dozen other items that the hitchhiker might accidentally have "lost." What the strag will think is that any man who can hitch the length and breadth of the Galaxy, rough it, slum it, struggle against terrible odds, win through and still know where his towel is, is clearly a man to be reckoned with.
Hence a phrase that has passed into hitchhiking slang, as in "Hey, you sass that hoopy Ford Prefect? There's a frood who really knows where his towel is." (Sass: know, be aware of, meet, have sex with; hoopy: really together guy; frood: really amazingly together guy.)