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A pierce point is located where a segment from another sketch or an edge intersects the current sketch plane.
This is different from a coincident relation which locates a point to the result of projecting geometry onto the current sketch plane.
In the old releases(I think before 2000), you couldn't create sweep or a loft unless your profile sketch was bound to your path by a peirce relation.
Today, Solidworks is a lot more forgiving and you can use coincident in place of pierce for most applications.
I attached a picture. Hopefully, that will give you some visual indication of the difference.
pierce_point.jpg 66.0 KB
Excellent explanation and example sketch.... :-)
Happy New Year,
Awe, you make me feel all good about myself and silly at the same time. Happy new year.