For instance, I buy way more shredded cheese than blocks. It removes an annoying step that creates a dirty utensil that isn't trivial to clean (grater). If I'm making 3 quesadillas a day for picky children to eat at different snack or mealtimes, I don't want to own 3 shredders, nor to have to carefully scrub the cheese off it 3x per day.
I haven't noticed any important difference in the cheese besides saving me like 15 minutes a day of fussing with cheese graters.