The terminology in this answer might be kind of tough to digest, but the idea is actually really simple. It can definitely be rephrased using "strong" induction.
It's really helpful to think of the ordered product $$f(i)\cdot f(j)$$
as the number of ways of creating - starting from a single root node - a left subtree of height $i$, not including the root node, and a right subtree of height $j$, also not including the root node. Therefore $f(i) \cdot f(j)$ will give us all the trees whose left subtrees (including the root node!) have height $i + 1$, and whose right subtrees have height $j+1$ (again, including the root node).
Counting how to do this for all $i, j \ge 0$, with at least one of $i$ or $j$ equal to $h - 1$, will tell us how to make all trees with overall height $h$ - since each tree of height $h$ is precisely just a root node and two subtrees, one of which has height $h-1$.
My point is that, if you actually look at it carefully,
$$\left[2\sum_{i = 0}^{h-2}f(i)\cdot f(h-1)\right] + f(h-1)^2 = \sum_{i = 0}^{h-1}f(i)\cdot f(h-1) + \sum_{j= 0}^{h-1} f(h-1) \cdot f(j)$$
and the right-hand side is going to give you all of the ways of making trees, starting from a root node, with subtrees of size $i$ or $j$, and $h-1$.