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Is there a guideline or a best practice on when to choose a Web Template over a Content Snippet? Is there a practical explanation of distinction between the two?
Content snippets are intended to be used for small pieces of content rather than more advanced functionality that you would put in a Web Template (note: the Content Snippet does not support all of the functionality that a Web Template does but this is not really documented)
https://learn.microsoft.com/en-us/power-apps/maker/portals/configure/customize-content-snippets
Look at the "Header" Web Template for one of the Portals to see how they use Content Snippets and Site Settings inside a Web Template. Microsoft have since disabled the front-end editor, but you also used to be able to enable the Snippet inside a Web Template so it was editable from a front end editor on the Web Site
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