Before I write, let me say I got most of this from the following site: http://www.cbu.edu/~jholmes/P353/N210ThermCond.doc
I think that the meaning here is similar to the concept of drift speed of electrons through a wire. Current flow can be macroscopically modeled as smooth, but at a molecular level a better model is one similar to the kinetic theory of gases; i.e. billiard balls colliding every which way but with a definite tendency to drift in one direction. So the phonon mean free path is the average distance a phonon 'particle' travels before 'colliding' with another particle. I read on the above-named site that the mean free path relates the temperature difference to the temperature gradient within the material, and the more phonons there are in an area, the more likely they are to collide with each other and therefore shorten the MFP.