What is the fundamental difference between ad-hoc and softAP WiFi network?
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The fundamental difference is that they use two different operational modes as specified within the IEEE 802.11 specification. A soft AP, is implementing all the functionality of an IEEE 802.11 Access Point including providing DHCP services. In this way, a phone may act as an Access Point to the Internet and other Clients may connect to it. In the ad hoc mode, there are no client and access points per se (but there may clients and server services), and all devices are equal.
If your wifi network consists of three devices, and you have two clients and one AP, the two clients will always communicate with each other through the AP. All data will first be transmitted to the AP, who then retransmits the data to the receiving client, even if the two devices are next to each other.
If your wifi network consists of three devices, and they all operate in ad hoc mode, they can all communicate directly with each other.