Past a certain size, formatted JSON stops being readable. A response with several thousand lines has its interesting field somewhere in the middle, and scrolling is a poor search strategy. A tree view exists to solve that: it renders the document as collapsible nodes, so you can close everything and open only the branch you care about.
The shift is from reading to navigating. You start at the root, see the top-level keys and nothing else, and descend. A deeply nested response becomes a few clicks rather than a few minutes, and the structure itself becomes visible in a way that indentation alone never quite achieves, especially past three or four levels where counting spaces stops working.
Types are worth noticing in a viewer, because that is where the bugs hide. Seeing that a field is the string "false" rather than the boolean false, or that an identifier arrives as a number rather than a string and has therefore lost a leading zero, is the kind of thing that explains a whole afternoon of confusion. A good view distinguishes them rather than rendering everything as text.
Large documents are bounded by memory, not by any quota we impose. The entire document is parsed into a value in your tab, so a file of a few megabytes is comfortable on a laptop and a file of several hundred megabytes is not going to be comfortable anywhere. If a document is too large to open, the practical move is to reduce it before viewing: take the array element you care about, or the branch you care about, rather than the whole export.
The privacy point is the same one as everywhere else here and it applies with particular force to viewing, because viewing is what you do to production data. The document is parsed in the tab and never leaves the device. Load the page, disconnect, and the viewer still works.
A habit worth adopting: when a colleague sends you a payload to look at, view it rather than skimming the raw text. The number of bugs that turn out to be a field nested one level deeper than everyone assumed is higher than anyone expects.