I think the main reason is it allows for easier access to Tor hidden sides with a “regular” web browser. Consider a wifi network that exposed .onion domains via normal DNS, or a VPN, or other similar mechanisms. It’s not as good as Tor browser, but may be a lot more accessible.
Yes, thank you, I think I had the wrong idea, I probably didn’t know. I looked it up and: so long as the tor service and the web server are on the same machine, and operated by the same people - i think that’s true. But they don’t need to be on the same machine, or managed by the same person.