This is not good to train neural networks (because they like to be fed dense, continuous data, not sparse and discrete) and it treats each word as an atomic entity without dealing with relationships between them (you don't have a way to know that the wprds "plane" and "airplane" are more related than "plane" and "dog").
With word embeddings, you get a space of continuous vectors with a predefined (lower) number of dimensions. This is more useful to serve as input or training data to neural networks, and it is a representation of the meaning space ("plane" and "airplane" will have very similar vectors, while the one for "dog" will be different) which opens up a lot of possibilities to make models and systems more robust.