One other advantage: High-speed printing.

In the early 90's I worked at a chemical company in a department that sometimes printed labels for sample-size drums of chemicals. We had an enormous tractor-feed laser printer that printed on giant drum-sized stickers. I was told that tractor feed was used because of the speed at which the labels were printed. If you remember the 90's, mechanical handling of individual sheets of paper wasn't very good. Piles of labels was worse.

I have no idea what the tech stack was behind the scenes, but I did each label run with a green screen Wang terminal.

(Fun fact: The administration offices were on one side of a very large, steeply-sloped, man-made hill, and the lab was on the other side. If bad things happened, the sales and administration staff was safe.)

This type of paper and dot matrix printers are still in use in some commercial and industrial settings, like accounting departments or warehouses where they need printers going 24/7. From what I gather this is the most reliable setup in those scenarios.

I still see tractor feed paper in a few businesses, usually where they need paper with multiple carbon copies...since tractor feed also usually means impact dot matrix.

I still see these in some older mom-and-pop auto parts stores, for example.