Well the real value of the 'paste in place' command is it will paste the copied (or cut) selection in exactly the same xyz position as it came from. In contrast any regular paste or duplication requires you to place the geometries where you want them and sometimes precise placement is difficult.
A real-world example of using paste-in-place is as follows:
Let's say you've modelled a house and used components and groups for major elements. You put all the grouped site & landscape elements on a layer so you can turn it off to see just the house. Upon turning off that layer's visibility you find a bunch of stray lines in the pool deck area are still visible. Shame on you! They are lines that should have been within the group that made up the pool area. Being oriented towards perfection as you are, you decide to fix the sloppy modelling rather than beat yourself up. You select and cut the stray geometries so they are in your system's clipboard. You turn back on visibility of the relevant layer and open the pool area group for editing. Then you use the 'paste in place' function with the confidence of knowing the lines will end up just where they were in xyz space but now within the proper group.
As an aside, I add that because of this feature (paste-in-place) it can make working with the component/group editing feature 'hide rest of model' more practical.
Regards, Ross