From my perspective, as a user, the big thing is compartmentalization.
Arc breaks the traditional paradigm of "bookmarks", using "Spaces" and "Pins" instead.
"Pins" are the closest to bookmarks. They appear at the top of the sidebar, and can be organized into folders. They differ from bookmarks in that they are pretty much native tabs that are unloaded until you open them.
"Spaces" are sets of tabs, both pinned and normal. You can associate a space with a specific profile, and each profile has separate cookies and such - but you don't have to.
From a usage perspective, pinned tabs instead of bookmarks mean that I can press Cmd+t and enter a URL, a search query, or the name of a pinned tab. It's smart enough to choose the correct one which means I don't have to think about it. That's handy, and was unique when I adopted it, but I'm sure it's either been implemented in other browsers or can be easily enough.
Spaces are _very_ handy, though. Right now, I have eight spaces. One "default" that I use normally, five for various projects I'm actively working on, one for a long-running project that requires me to log into a different Zoom account (so that one has its own profile, to prevent my accidentally being logged into the wrong Zoom account when joining a meeting), and one for personal stuff.
I have it on my list to look for an alternative and migrate, but it's still working for my needs. I'm going to miss it, though.