The other thread seems even more confused about it actually. It is the thunder clap effect yes, but burning effects (after building collapse) and the ground textures of buildings are also technically ubersplats.
It is one of a few things that can project a texture onto the terrain.
For that matter, Image - Create an [image] at [x,x] is a better option. Because it has more functions as it allows for different texture filter modes, while ubersplats only allow for alpha blend and it can be scaled while ubersplats cannot.
You can project all sorts of textures onto the terrain, such as very high definition tileset (because texel density of the ubersplat texture can be higher than that of the regular tileset) or you can project detailed shadows or whatever you like onto the terrain.