I like to compare them to bytes and characters. You would use bytes if you need bytes, and you would use characters if you need characters. They are unrelated data types unless a character encoding is specified. Likewise, instants and locals are unrelated data types unless a time zone is specified.
BTW, the manual page links to https://it.toolbox.com/blogs/josh-berkus/zone-of-misundersta... which explains that "with time zone" doesn't store a time zone.