1) 7/8 series have a home button that doesn't actually push. The Taptic Engine mimics the feel of a button push.
2) It allows for different types of vibration, e.g. when hitting the corner of the screen while dragging or for more subtle notifications. (https://www.androidcentral.com/its-2018-and-android-phones-s...)
The iPhone 6 battery is 1810mAh, whereas the 8 is 1821mAh. So they didn't increase the battery size; they added the Taptic Engine instead, and got rid of the mechanical home button.
Articles gush about the Taptic Engine, but I'd still rather have my headphone jack back. And I liked the clicky home buttons.