Hi Thomas,
"the example given in the question" - Huh? I just went back and checked the question to make sure, but there is no example at all given in the question.
"Can anyone give an example of where a CASE expression should/could be used in a WHERE clause?" - Lots, if I have to. A very common one is that of a stored procedure with an optional search argument:
SELECT Something
FROM SomeTable
WHERE SomeColumn = CASE WHEN @SomeParameter = 'ALL' THEN SomeColumn ELSE @SomeParameter END;
Or a stored procedure for searching places in a radius that can be specified in either miles or kilometers:
SELECT Something
FROM SomeTable
WHERE DistanceInKM < CASE WHEN @unit = 'miles' THEN 1.609344 ELSE 1 END * @MaxDistance;
Or a table that uses the column FoundingDate for business customers and BirthDate for people customers in a query that reports customers older than 50 years:
SELECT Something
FROM SomeTable
WHERE CASE WHEN CustType = 'B' THEN FoundingDate ELSE BirthDate END < '19570424';
Need I go on?