In v2.11 which I have been using, -i has a huge effect for interactive programs, eg cmd.exe :
psexec \\RemoteSystem -u user -p password cmd.exe
without the -i opens cmd.exe with standard input and standard output connected to your current console. So you can type cmd command line commands onto the remote machine and see their output without disturbing a user who's interacting with that PC's windows GUI at the same time.
psexec \\RemoteSystem -i -u user -p password cmd.exe
on the other hand with the -i opens a new cmd window on the GUI display, interrupting the remote user's work. The remote user in front of that computer can interact with cmd.exe, but you can't locally.
They're very different (if the program is interactive). I make use of both modes extensively.
Has this changed?
For reference, from: https://docs.microsoft.com/en-us/sysinternals/downloads/psexec on 01/24/2022 (v2.34 is current):
-i | Run the program so that it interacts with the desktop of the specified session on the remote system. If no session is specified the process runs in the console session. This flag is required when attempting to run console applications interactively (with redirected standard IO). |