Ui:include and xhtml based tag (the one with source elt) seem to be much the same for me. Both allow to reuse piece of markup. But I believe there should be some reason for having each. Could somebody please briefly explain it? (I guess if I read full facelets tutorial I will learn it, but I have not time to do it now, so no links to lengthy docs please :)
They are quite similar. The difference is mainly syntactical.
After observing their usage for some time it seems the convention is that fragments that you use only in a single situation are candidates for ui:include, while fragments that you re-use more often and have a more independent semantic are candidates for a custom tag.
E.g.
A single view might have a form with three sections; personal data, work history, preferences. If the page becomes unwieldy, you can divide it into smaller parts. Each of the 3 sections could be moved to their own Facelet file and will then be ui-include'ed into the original file.
On the other hand, you might have a specific way to display on image on many views in your application. Maybe you draw a line around it, have some text beneath it etc. Instead of repeating this over and over again you can abstract this to its own Facelet file again. Although you could ui:include it, most people seem to prefer to create a tag here, so you can use e.g. <my:image src="..." /> on your Facelets. This just looks nicer (more compact, more inline with other components).
In the Facelets version that's bundled with JSF 2.0, simple tags can be replaced by composite components. This is yet a third variant that on the first glance looks a lot like custom tags, but these things are technically different as they aren't merely an include but represent true components with declared attributes, ability to attach validators to, etc.