With Vue's HTML templates, the page itself can be the component and everything can become interactive. For example, you can easily output a HTML table from server-side code, then Vue can convert that into a interactive component while using the existing structure and data.

This lets you render the page using existing web frameworks, it's faster because the server puts it together, it's progressive enhancement and works without JS and on slow devices, and Vue can seamlessly add on top with nothing more than a single JS tag and no compilation step.

If you're using vue, you inherently use state or props, and those are handled using {{ myState }} syntax. If you load everything from the backend, it's going to have the actual data in the table. How would you convert the already-rendered HTML to something interactive if the template isn't set up that way?

Vue has a bit more flexibility in that regard.

I am not sure this analysis is entirely correct.

In case of server-side-rendered React pages, React takes the html that arrives from the server and makes it interactive ("hydrates" it, according to the common React community parlance), provided that that DOM generated from that HTML corresponds to the virtual DOM that React generates. It doesn't throw the original DOM away.