[dllthomas]

It works like this:

User -> Interface -> X Server -> Network -> X Client

The huge functional difference (in terms of what you describe - no idea if that's how Wayland intermediary whatever will actually work) is that with X you do not need an X server running or even configured or even installed on the system the client application is running on - only on the system it is displaying to. This may or may not be significant, depending on how lightweight and portable and easily (and flexibly) configurable the Wayland server winds up being.