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It's virtual machines but faster, more configurable with a considerably larger set of automation, and it consumes less computer resources than a traditional VM. Additionally, in software development it helps solve a problem summarized as "works on my machine." A lot of traditional server creation and management relied on systems that need to be set up perfectly identical every deployment to prevent dumb defects based on whose machine was used to write it on. With Docker, it's stupid easy to copy the automated configuration from "my machine" to "your machine." Now everyone, including the production systems, are running from "my machine." That's kind of a big deal, even if it could be done in other ways naturally on Linux operating systems. They don't have the ease of use or the same shareability.
What you're doing is perfectly expected. That's a great way of getting around using Docker. You aren't forced into using it. It's just easier for most people
This is exactly the answer.
I'd just expand on one thing: many systems have multiple apps that need to run at the same time. Each app has its own dependencies, sometimes requiring a specific version of a library.
In this situation, it's very easy for one app to need v1 of MyCleverLibrary (and fails with v2) and another needs v2 (and fails with v1). And then at the next OS update, the distro updates to v2.5 and breaks everything.
In this situation, before containers, you will be stuck, or have some difficult workrounds including different LD_LIBRARY_PATH settings that then break at the next update.
Using containers, each app has its own libraries at the correct and tested versions. These subtle interdependencies are eliminated and packages 'just work'.
I can also add that if you want to run multiple programs that each have a web interface it's easy to direct each interface to the port you want instead of having to go through various config files that are different for each program or worst case having to change a hardcoded port in some software. With docker you have the same easy config options for each service you want to run. Same with storage paths. Various software stores their files at seemingly random places. With docker you just map a folder and all you files are stored there without any further configs.