The idea, in a very rough nutshell, is to allow separating behavior and presentation.
Hooks are the reusable unit of behavior. You compose hooks into more complex hooks that might implement loading and saving data from/to the server, for example.
Then you can use this hook with different components, or use the same component in a different context with a different data source. This can be very powerful if used well.
But as I said at the beginning, hooks are unfortunately also very difficult to get right.
Class components when needing more complex behaviours related to lifecycles/context had the choice of:
a. Hard wiring up all the different lifecycle events to bespoke systems, on a per component basis (use same thing in 5 places? Implement it 5 times)
b. export const ActualWorkingComponent = HOC(HOC(HOC(HOC(NonWorkingWithoutHocComponent,{conf4}),{conf1}),{conf2}),{conf3});
I will fully admit that useState is more aimed at singular/simple values, so a more complex object is a pain to directly copy over. (useReducer or wrapping setState could work, as the child components shouldn't re-render unless their props change).
But it is so much nicer to have the dependencies at the start of the the functional component, and not in a horrid callstack at the bottom, with 3 different ways of defining which prop gets which HOC's values/functions and then injecting even more callbacks to munge those values from the out HOCs to use in that HOC to make it's output good for next HOC...
Instead, it's just:
const {widgetId} = useRouterParams();
const widgetData = useSelector(selectWidgetById(widgetId));
No mess, no fuss, use it it in a few places? Wrap it up in a function of it's own.
Was there anything wrong with class components? It's what I learned half a decade ago, and the idea of a "state" object made so much sense. Now, with hooks and whatnot, it seems like React is trying to be "functional" without actually being so.