Well, TCX is quite a rich schema, but effectively - in the context of route planning they are just breadcrumb trails. The magic is in a combination of the software that writes them (eg RWGPS) and how the navigation devices use them. The files themselves are just breadcrumb trails.
TCX is Garmin's own extension/re-implementation of GPX. Much of it is given over to recording workouts and providing stats on those workouts (HR, cadence etc. Stuff that you can't fit into a GPX file). Only part of it (Courses) is dedicated to route planning.
A GPX file file consists of one or more tracks, made up of one or more segments, made up of trackpoints (breadcrumb trails) and optionally also some waypoints (points). (Yes I know it can also contain other stuff like routes as well as tracks, but let's skip that).
A TCX Course is very similar. It's a Course, containing Tracks, made up of Trackpoints, plus some "Course Points". The course points are what provide you with the advance warning of turns and so forth. Unlike the waypoints in a GPX file that can be any old where ,the course points have to be exactly on the track. (This makes the files difficult to edit by hand). The course points are where the magic happens. If you tell RWGPS you want a turn warning 17m before each turn, it will count back 17m from each turn and generate one.
That's my understanding anyway.