> Why did Person A (who already had an email address) send a SMS text to Person B (who also already had an email address) to chat?!?
Arguably primarily because they want to chat with them and not email them. The two have vastly different UX beyond just contact discovery.
Before WhatsApp there were ICQ (also number-based!), MSN, Skype... WhatsApp's main contribution over these was indeed using phone numbers and contacts access for automated contact discovery, but I don't think it makes sense at all to characterize it as a usability improvement on email.
Another case in point: iMessage supports email addresses as identifiers too. I don't even have my phone number on there because I consider it a strictly inferior identifier (it changes every time I move countries, I lose it if payments to my operator ever lapse, unlike a TLD I have no way of owning it independently from a phone plan etc.)