It's a design system as well as a set of utility classes. Consider the difference between
<span style="color: #cccccc">Gray text</span> and <span class="text-gray-700">Gray text</span>
In the former, you can't just redefine what gray means. You've hard set it to a value you need to keep track of and keep consistent. On the right, you can configure what "700" means, switch between a cool gray or a blue gray, etc.