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I know the difference that ng generate application <app-name> works only in angular app folder. but what are the other differences.
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ng generate command generates and/or modifies files based on a schematic.
ng new command creates a workspace of given name with a default Angular Application. It provides interactive prompts to set optional configurations.
ng new NAME create a new workspace with a default application
ng g application NAME create a new application in an existing workspace
The official documentation does not explain this in full details. So I'll recommend dig out some blogs posts that make introductory post for it. Such as the following:
Angular 6 Workspace
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