Pellet printing is usually used in larger printers. You can get much higher flow rates and the pellets are cheaper than filament. That's good when your build volume is measured in cubic meters and you are using many kilograms of plastic in one print.
There are downsides as well. High throughput pellet feeding hot ends are insanely expensive. But there are practical issues as well, retraction can be really tough to dial in.
I mean the same way, retraction isn't pulling the molten filament out of the nozzle in FDM so I'm either filament or peeler based extrusion you just run it in reverse briefly.