Hi @Bryce Kneisel and welcome to the Community!
Very simply put: team managed projects are / were a very well intended attempt from Atlassian to enable teams to create a spaces for the work they do in isolation just for their team without needing assistance from their company's Jira Admin.
Jira configuration (in company managed projects and on Data Center, where the model is the only way to configure projects) is quite robust, but can be quite complex to master. Since the cloud platform scales way beyond software and service teams, but tries to offer an environment to collaborate across all your org's teams, it can be convenient that your (often few) Jira Admins can delegate some of their work to teams when it is less business critical or - as mentioned before - constrained to the scope of a single team that wants (and is allowed) to set up its own way of working.
As you noticed, simplifying the capabilities comes with reduced capabilities as well.
To learn more about Atlassian's official positioning, check out this support article where you can also click through to learn more about the feature differences.
Hope this helps!
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