Besides that, for alphabetic languages, there exists almost no relation between form and meaning. I.e.: “ring” and “wing” differ by one letter but have no real common meaning. By picking the character or byte as your choice of representation, the model basically has to learn to distinguish ring and wing in context. This is a lot of work!
So, while working on the character or byte level saves you some embeddings and thus makes your model smaller, it puts all of the work of distinguishing similar sequences with divergent meanings on the model itself, which means you need a larger model.
By having subwords, a part of this distinguishing work already has been done by the vocabulary itself. As the article points out, this sometimes fails.