The point is to prevent mold and keep the air clean. One of the biggest problems with traditional crawlspace design is that the vents let humid air from the outside in, which then condenses, turns into water, and causes mold growth in many cases. If there are any openings at air ducts or if the insulation is installed backwards this increases the chances of that happening.
But an encapsulated crawlspace is essentially a tiny basement. The air is more or less consistent with that of the home, cleaner, dryer, and less mold (hopefully). As somebody who is in crawlspaces almost every day, I can confirm the air in an encapsulated crawlspace tastes and feels much better than a dirt floor crawlspace.
Common Findings
For some reasons a lot of contractors go halfway. They close the vents, air seal the walls and floors, install a sump pump and then stop. That’s not enough though. An encapsulated crawlspace requires a way to dry out any moisture that does form. You’re unlikely to get water from the outside, but plumbing leaks, sump pump failure, or other factors can still lead to moisture in an encapsulated crawlspace. If this happens, it is actually a big problem as now the moisture can’t dry out like it could in a traditional vented crawlspace. This will lead to mold growth, in some cases more than you would otherwise have in a traditional crawlspace!