The GCC 4.1.2 documentation has this to say about the -pipe option:
-pipe
Use pipes rather than temporary files for communication between the various stages of compilation. This fails to work on some systems where the assembler is unable to read from a pipe; but the GNU assembler has no trouble.
I assume I'd be able to tell from error message if my systems' assemblers didn't support pipes, so besides that issue, when does it matter whether I use that option? What factors should go into deciding to use it?