Traditional process is:
OSM Database -> PNGs -> Your screen
The first arrow decides what data to pull out and how to draw it.
The new process is:
OSM Database -> Vector Tiles -> Your Screen
The first arrow decides what data to pull out. The second arrow decides how to draw it. So given your vector tiles, you can choose and tweak the style that it's drawn as, deciding how (and if) to display certain things. And you can tweak that in your browser. That's useful for devs and users. "Night Mode", "Show bike lanes" (maybe?), etc.
Also relevant is that the vector tile is not only in a couple formats (pmtiles, mbtiles) but conforms to a couple different schemas (Shortbread, OpenMapTiles) which determines what kinds of data shows up. For instance (I'm just making up this example) one schema might have "big" "medium" and "small" roads. Another schema might just have "big" and "small". The transformation process will decide which kinds of roads in the OSM database map on to which type of road in the schema. (I think it turns out that you can't realistically just pull out all of the OSM database data, you have to pare it down). And then certain styles (Americana, etc) work for specific schemas, deciding things like "big roads are black", etc.