What is the real conceptual difference between ui:decorate and ui:include?

The main difference between <ui:include> and <ui:decorate> is that the <ui:decorate> is intended to allow insertion of user-defined template components, while the <ui:include> is intended to include an existing and already-predefined template.

This indeed means that the <ui:decorate> supports <ui:define> for user-defined template components in its body and can insert it at the <ui:insert> place inside the template.

Here’s a -somewhat clumsy- example to show where it can be used:

/WEB-INF/templates/field.xhtml

<ui:composition
    xmlns="http://www.w3.org/1999/xhtml"
    xmlns:f="http://java.sun.com/jsf/core"
    xmlns:h="http://java.sun.com/jsf/html"
    xmlns:ui="http://java.sun.com/jsf/facelets"
>
    <h:outputLabel for="#{id}" value="#{label}" />
    <ui:insert name="input" />
    <h:message id="#{id}_message" for="#{id}" />
</ui:composition>

/page.xhtml

<h:panelGrid columns="3">
    <ui:decorate template="/WEB-INF/templates/field.xhtml">
        <ui:param name="label" value="Foo" />
        <ui:param name="id" value="foo" />
        <ui:define name="input">
            <h:inputText id="foo" value="#{bean.foo}" required="true" />
        </ui:define>
    </ui:decorate>
    <ui:decorate template="/WEB-INF/templates/field.xhtml">
        <ui:param name="label" value="Bar" />
        <ui:param name="id" value="bar" />
        <ui:define name="input">
            <h:selectBooleanCheckbox id="bar" value="#{bean.bar}" required="true" />
        </ui:define>
    </ui:decorate>
    ...
</h:panelGrid>

Note that it renders the components nicely in each cell of the panel grid. Again, this particular example is pretty clumsy, I’d just have used a tag file instead. Only if it was a larger section, e.g. a whole form whose e.g. its header or footer should be customizable, then an <ui:decorate> would have been appropriate.

Another major advantage of <ui:decorate> is that it allows you to use a composite component with a template. See also Is it possible to use template with composite component in JSF 2?

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