What are the main advantages of using a model for concurrency based on processes over one based on threads and in what contexts is the latter appropriate?
In this case Processes are more independent of eachother, while Threads shares some resources e.g. memory. But in a general case Threads are more light-weight than Processes.
Erlang Processes is not the same thing as OS Processes. Erlang Processes are very light-weight and Erlang can have many Erlang Processes within the same OS Thread. See Technically why is processes in Erlang more efficient than OS threads?