author here.. happy to answer any questions!
Why is this better than rsycn or scp?
Once that's established, and assuming that the two machines can reach each other (the server isn't behind a NAT box), then the client can `scp` and `rsync` all they want.
Magic-wormhole doesn't require that coordination phase. The human sending the file runs `wormhole send FILENAME` and the tool prints a code. The human receiving the file runs `wormhole rx CODE`. The two programs handle the rest. You don't need a new account on the receiving machine. The CODE is much much shorter than the two pubkeys that an SSH client/server pair require, short enough that you can yell it across the room, just a number and two words, like "4-purple-sausages". And you only need to send the code in one direction, not both.
Currently, the wormhole programs don't remember anything about the connection they just established: it's one-shot, ephemeral. So if you want to send a second file later, you have to repeat the tell-your-friend-a-code dance (with a new code). We have plans to leverage the first connection into making subsequent ones easier to establish, but no code yet.
Incidentally, `wormhole ssh` is a subcommand to set up the ~/.ssh/authorized_keys file from a wormhole code, which might help get the best of both worlds, at least for repeated transfers.