The simple answer - The Create/Edit Workspace is where the user sets up and assigns things overall, and the Diagram Workspace is where the user can customize things at the individual component and parameter level.
The somewhat longer answer -
The Systems Create/Edit Workspace features vary based on the Systems Workspace selected, but for the Water Loop example shown, it allows the user to:
Create New and Edit Water Loops
Select the Loop Type
Apply a Water Loop Template
Preview the selected Water Loop Template
Assign Loop Level Parameters
The Systems Diagram Workspace features also vary based on the Systems Workspace selected, but for the Water Loop example shown, it allows the user to:
Edit the Water Loop Template by dragging and dropping in new Component Shapes from the Stencil
Change the individual component Library Entities
Assign the individual component to another Water Loop
View/Edit properties of the individual components by selecting them and diving into the properties
Hide the Controls components
Set the Loop Level controls for Plant Operation Schemes
Set the Loop Level controls for Availability Managers
Set the Loop Level controls for Demand Managers
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