hostmot2 stepgen control-type

I am hoping that someone can help me wrap my head around the difference between Position mode (0) and Velocity mode (1) for the stepgen control-type.  The man page in hostmot2 is pretty vague, only saying that it sets the different modes.

I have also looked at the stepgen man page, but it isn't a ton of help either:

The default is position control, which drives the motor to a commanded position, subject to acceleration and velocity limits. Velocity control drives the motor at a commanded speed, again subject to accel and velocity limits. Usually, position mode is used for machine axes. Velocity mode is reserved for unusual applications where continuous movement at some speed is desired, instead of movement to a specific position.

I think I need someone to explain it to me like I'm 5, and also it would be helpful to have an example application of each.

EDIT: I should add that some of my confusion comes from the above description saying that velocity mode is reserved for unusual applications, however it seems to be the default for about every config I've ever seen here.

Lets see if i can mess this up
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Position mode = no PID loop, feedback is directly from stepgen, more susceptible to jitter
Velocity mode = PID loop, feedback through PID from stepgen, feedback easily changed to encoder for closed loop in LinuxCNC, less susceptible to jitter
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Found a post by PCW explaining the jitter issue:

PCW wrote:

I have done some experimentation and have found that you can get better
stepgen following performance on systems with moderate jitter by using a
PID loop for position control instead of the stepgen drivers built-in position control loop.
The problem with the built in driver position control is that its tends to overcorrect
for measured position errors cause by sampling jitter.

Thank you Chris and Tommy, that helps a lot. I’ll ponder for a bit and see if I come up with any more questions