The concrete difference is that folders force one place and links allow many, and the cost of that shows up later rather than immediately.
A note about a technique you learned on a particular project belongs in the project folder and in the techniques folder. With folders you choose, and in six months you look in the wrong one. With tags you can have both, which is why tags exist.
What links add on top of tags is direction and context. A tag says these notes share a label. A link says this note refers to that one, and — with backlinks — the target shows you everything that referred to it, without anybody maintaining a list.
That last part is the whole thing. A note about a concept slowly accumulates a list of every context where the concept came up, assembled by you writing normally rather than by you curating. Folders and tags never produce that, because they have no notion of one note pointing at another.