Basically, a traditional web feed lets you select the news feeds that were selected by the publisher, but Yahoo! Pipes let you edit and filter the content.
Speaking from a user standpoint. The concept seems to be pretty straight forward. But to actually create something that is useful may not be an easy task. I don't see the instructions on the websites itself is clear enough and some example would be better. Heck, many people have just learned how to use a traditional rss feeder or know what it is. Pipe is definitely an advance feed aggregator for experienced users that know exactly what they want to read.
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