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An ISA is free of income and capital gains tax. A SIPP is the same, plus if you die before you’re 75 it can be also be free from inheritance tax.
Only 25%* of income from a SIPP is free of income tax, the other 75% is taxed at your marginal rate. Also dividends are taxed IIRC whereas in an ISA dividends are tax free.
* And that's only up to the lifetime allowance. An ISA can grow to £10m and be 100% tax free.
Anyway, main takeaway is there are a lot of tax breaks for the wealthy in the UK....
This ignores the rules on gifts you still benefit from:
I think the point they are making is that you can give away everything down to your last million, without reservation, and then there is no IHT at all (though note there may be CGT, which could be worse, but can often be worked around).
Most people (couples!) would find a million pounds of assets to provide a very comfortable living in their retirement. On top of whatever pension they had built up of course, which is likely to be ample in itself.
If you are leaving the bulk of your estate to your children anyway, there seems little reason not to give it to them early. Again, I'm only talking about the very rich with well over a million in total wealth.