From https://wiki.ubuntu.com/Wayland "The X11 protocol was designed around running graphical apps across the network. While some people use this feature, it's far from common. Wayland drops this requirement as a way to greatly simplify its architecture." X client and server are usually the same machine, but they don't have to be. While on the road, you can use your notebook to open a Gimp session on your home machine…
I'm not an expert, but my understanding is that the whole X11 is network transparent thing worked great when apps used the X11 drawing primitives. These days a significant number of X11 apps just render _everything_ (often including window decorations) "server-side" as bitmaps and then send them over the wire to the client to composite them. Essentially the X11 wire protocol has become a bitmap pipe.
Wayland does the "bitmap pipe" thing more efficiently than X11.