It occurs ago me that ui:decorate is functionally the same as ui:include except that you can also pass ui:param and ui:define
The main difference between is intended to allow insertion of user-defined template components, while the is intended to include an existing and already-predefined template.
This indeed means that the supports
Here's a -somewhat clumsy- example to show where it can be used:
/WEB-INF/templates/field.xhtml
/page.xhtml
...
Note that it renders the components nicely in each cell of the panel grid. Again, this particular example is pretty clumsy, I'd just have used a tag file instead. Only if it was a larger section, e.g. a whole form whose e.g. its header or footer should be customizable, then an would have been appropriate.
Another major advantage of is that it allows you to use a composite component with a template. See also Is it possible to use template with composite component in JSF 2?