I think somebody is confussing somebody... peat most is very fine dried up peat, when dry it's like dust, often added in soil mixture to help retain moisture in the soil itself, usually flowers, herbs etc. are planted in it, not bonsai, to moist. Spagnum moss can be applied to the top of the soil to help retain moisture in those type of plants that maintain alot of fine roots right at the trunk. Ie. junipers, in a very hot climate. You do also like said see them in plants from the store where rocks have been glued in, which is prob. why so they can only water about once a month. Spagnum moss used in this way, for it's moisture retaining properties can be very effective for it unlike if you were to lay peat moss, which would litterally smother the plant, it still allows the soil to breath. Then there is decorative moss which is usually the type you find in the corner of the yard where alot of moisture, and very little sun are, or on rocks, tree trunks etc. Which unlike the peat moss on top which would prob. kill it, the spagnum moss that can help it, the decorative moss is good to show the tree with, but as previously mentioned can take off.
Your information is incorrect. Sphagnum is a genus of approximately 380 species of mosses commonly known as peat moss.
I know what you mean about the different products but commonly the package says sphagnum peat moss, they are not 1 different things: peat is just a common term used loosely.
As far as products sold for horticulture, I tend to agree that the fine dusty powdery stuff sold in "potting mixes" such as miracle grow does lead to root rot and nasty anaerobic soil after a little time. I don't ever use this stuff. Then there is the "good" kind of moss which you are referring to as sphagnum. This stuff is left whole and fibrous and allows aeration and retains water. I use it for air layers and comprised plants and sometimes put it along the outside of the pot on yamadori to give the roots something to grow towards (remember the elementary school experiment with the Dixie cup and the pea plant's roots would grow towards it). This good kind is often sold as "orchid grow moss".
But sphagnum and peat aren't two different things. That's like saying gymnosperms and conifers are two totally different things.
The difference is that the stuff you dont like that they put in most potting soils is the "sawdust" "dirt" and sometimes purposely shredded stuff when they process it. The good stuff is just the choice pieces when processed.
So to respond to you that "somebody is confusing somebody" I would agree, and you are perpetuating that confusion.
But as far as ornamental value of either of these I have a brief comment. I noticed that after adding some of the "orchid grow moss" to the top of a pot it had turned green after a few weeks even though it was completely brown when I first bought it. I googled this and others had noticed the same thing, but it's not the moss coming back but the algae that inhabits it. Since then I was reading my peter chan book and one section he repots a zelkova into a light blue pot. He uses some of the good rough textured moss, and then in the photo showing the tree months later, it had become green and looks quite nice.
Now I know nothing about if this algae that's coming back is harmful to trees; so I don't purposely go for that.
But to the original poster: dont let the certain people on this forum get you down. There are some people with incredible experience that just want to help; but not everyone. Some people are just regurgitating the same (often incorrect) information that they have heard and they are not answering your question from personal experience. There are also people who are just haters that come on this forum just argue and try to act like they know everything. I believe these people are missing all of the spiritual lessons that can be learned from our wonderful hobby. If you comment on this forum, it should be to share your knowledge and give some motivation. Too often ppl comment just to make the poster feel stupid and their overall message in discouraging and rude, instead of uplifting and helpful.
Like someone else said, it usually makes the most sense to apply groundcovers when preparing your tree to be shown so your soil drains better and your not having to fight back the moss. But if you want to use it all the time, you should try it because personal experiences are way more valuable then some comment from around the world that is telling someone their information is incorrect (when in fact their own info is incorrect). Ppl can be assholes, and especially when they are emboldened by the fact that they can say whatever they want online without the repercussion of getting punched in the face.