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'sh' is shell (usually /bin/sh, which is usually a symbolic link to bash, dash, ksh or other shell).
So by piping a command to shell, it gets executed. Simple like that.

E.g.:

$ echo cat...

go through the columns, check for "etime", if found, print column 1 and the etime colum. NF means number of fields

Well, Chubler_XL's solution could be written on one line if one was so inclined (there's nothing in the shell grammar that prevents it).

Also, the approaches are not equivalent. Chubler_XL's...

Try this - replace echo with actual move when your happy it's working:

for file in *
do
[ -f "$file" ] || continue
case "$file" in
*.sh)
# Not to be moved
;;
...