netcat+mkfifo does the actual transfer with TCP - so there's no tunneling involved. This solution tunnels tcp through file abstraction, so it works significantly differently.
As for the uses, see the three author listed. For example, by using a file share as transport you may evade firewall.
1. It gracefully supports each side of the tunnel turning on and off.
2. It accepts any number of clients, and forwards them through the tunnel.
3. It recycles the shared file.