In the tee case the substitution is actually going somewhere different than standard out (that's what tee does).

so:

    cmd1 | tee out.txt | cmd2

So tee is splitting the stream into two outputs, one that carries on out stdout (into cmd2) and the other one that is redirected into out.txt.

With process substitution you can do extra stuff on the way out, I guess (I've never seen it used for output before).

It looks like in the example given they're writing wc stuff to stderr while zipping the content (over stdout).

Nice to see that example, I hadn't even thought about the usefulness of process substitution for outputting like this!