Well, a bound column is simply less flexible than a template column. It just spits out the data for non-edit state, and gives you the standard text box for edit state.
For example, in a recent datagrid I put out, I had five columns of bit data that I needed to represent in a single column of the datagrid.
In a non-edit state, the column was to have simple text in it (that had to be created from the five columns, a comma separated string of descriptions).
In an edit state, the column had to contain a table with five columns, a checkbox in each, and each representing the current 1/0 state of the data fields.
Here is a rough approximation of what it looked like, just to fill you with ideas. ;-)
<asp:templateColumn>
<itemTemplate>
<%# returnServiceText(Container.DataItem("f1"

,Container.DataItem("f2"

.... ("f5"

)%>
</itemTemplate>
<editItemTemplate>
<table cellpadding=1 cellspacing=0 border=0 width=100%>
<tr>
<td>Field1</td>
<td>Field2</td>
<td>Field3</td>
<td>Field4</td>
<td>Field5</td>
</tr><tr>
<td align=center>
<asp:checkbox id=ckb1 checked=<%# returnChecked(Container.DataItem("f1"

) %> />
</td>
<td align=center>
<asp:checkbox id=ckb1 checked=<%# returnChecked(Container.DataItem("f2"

) %> />
</td>
<td align=center>
<asp:checkbox id=ckb1 checked=<%# returnChecked(Container.DataItem("f3"

) %> />
</td>
<td align=center>
<asp:checkbox id=ckb1 checked=<%# returnChecked(Container.DataItem("f4"

) %> />
</td>
<td align=center>
<asp:checkbox id=ckb1 checked=<%# returnChecked(Container.DataItem("f5"

) %> />
</td>
</tr>
</table>
</editItemTemplate>
</asp:templateColumn>
so that then all I had were two functions in the codebehind... the first one accepted five arguments, evaluated the 1/0 state of each, and returned a string variable describing that (i.e. "desc1,desc3" if only f1 and f3 were true).
Then, I had another very simple function that returned the state of each individual field to either check or uncheck the editable checkboxes when the row was in edit state.
So... that was a little long-winded, but with template columns, you can do just about anything you can imagine w/in the context of a datagrid. It makes each column completely customizeable for those applications where you need more than just a standard type of display.
I have thought of putting together a comprehensive FAQ on the datagrid, but to be honest, there's just too much information, and once you start, you would have to make a discertation out of it to be complete and make it really helpful.

paul