A nice writeup, but I'm curious what the tar pipe gains over a more normal way of copying directories like 'cp -a'. (Or is that what it means by 'mostly obsolete'?)
The other thing is that hard-linked files are apparently handled differently: http://stackoverflow.com/questions/316078/interesting-usage-...
Once you got how useful piping is, you understand why you can do something as powerful as:
machineA: tar -cf - dir | gz | ncat -l -p 6789
machineB: ncat machineA 6789 | gunzip | tar -xf -
And here you go, a dir is sent compressed through network with the power of little tools and a good inter-communication.