My personal mental model of the two functions is this: 

Say you have a (current) tiddler titled "My first tiddler".

<$wikify name=tid text={{!!title}}>

puts a (rendered) string into the variable, <<tid>> is equal to the text "My 
first tiddler". 

<$set name=tid value={{!!title}}>

puts "{{!!title}}" into the variable <<tid>> which in *some* contexts would be 
replaced with "My first tiddler" – but in the context of another current 
tiddler it would be replaced with the other tiddler’s title. 

As a macro parameter the wikified <<tid>> inputs "My first tiddler" into the 
macro, but the set <<tid>> inputs "{{!!title}}" – the first can be used as an 
id, the second can’t. 

Maybe this is not 100% scientific, but it helps me a lot! 

All the best!
Thomas 

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