Earlier quoted context omitted.
The advantage if that you get a more usable and understandable list of historical changes. "You wouldn't publish the first draft of a book" [1] A squashed merge or rebased and cleaned set of commits gives a very clean overview of which changes where made, at what point, why they were made, and what together. That picture tends to get utterly lost in the "set up X", "make test Y", "fix typo", "wip" and "change error h…
You wouldn't publish a first draft, but neither would you burn it once the final draft was off to the printer. Personally, I'd prefer it if "squashing" commits was purely a UI thing; the underlying commits were all still there, but grouped together and displayed as a single big "virtual" commit. That way you could still drill down to the real history if you needed to.
That may be an accurate representation of the order savepoints were made, but it's not an accurate representation of how the software evolved. It is noise that needs to be discarded if a reader would like to know what change was really made. It also makes if difficult or impossible to use tools like git bisect.
Is the argument really that a more detailed history is always better? In the trivial case every keypress could be a savepoint, and every savepoint a commit.
One does not always know in advance that a commit needs to be split in two. The only way to produce readable commits without rebasing them in that case is to work with local _backup files. A version control system does this much better.