It is a different genre with different strengths and weaknesses. I think it is best to illustrate through concrete titles:

Counterfeit Monkey by Emily Short [1]:

It is a parser based puzzle game. (Parser based means that there is a "command line" where you type in what you want to do.) In the game you play a smuggler who wants to steal some high tech plans from the island of Atlantis. You see, the Atlantans developed cutting edge tools in linguistic manipulation. They have devices which can change one object into an other based on manipulating the written form of their name. For example a d-remover can turn a playing card into a drivable car! During the game you solve a bunch of challenges with different creative application of such tools. If you like puzzles, puns, and word magic you should try this game.

Vain Empires
by Thomas Mack profile and Xavid [2]:

"The memoir of a demonic spy in the Cold War between Heaven and Hell."

Another parser game. Here you are playing a devil, who is trying to prevent a global catastrophe. You cannot directly manipulate the world around you, but you can pluck motivations from the non-player characters head and implant it in others. Thus manipulating you have to steal secrets, negotiate a peace treaty and foil your heavenly counterpart’s plan for world domination.

And just to show that not every text based game is a pure wall of text. This one is a hybrid visual-textual one:

80 days from Inkle [3]:

It is a choose-your-own-adventure style story game. It is based on Jules Verne's 1873 novel Around the World in Eighty Days. You play as Phileas Fogg's manservant, who has to manage the whole travel. There are two different "screens" to this game. There is a globe interface where you can decide on your travel options. Do you take the Orient Express to Paris, or board a ship sailing southward? And then there are the "text" screens where you have to navigate all the unexpected adventures life throws at you. If you like a globe-trotting steampunk-ish adventure this game is for you.

So why interactive fiction?

These games were generally created by small teams or even by single creators. Such indies can invest their time making games which would be too risky for a big studio. So you will find many strange concepts and weird experiments. You can find many of the interactive fictions are off from the mainstream zeitgeist.

Another point is the economics: A single writer can create a whole word if they want. Text is a very efficient medium that way. The core concepts of the first two game in this list is a perfect fit for the textual medium. Would be very hard to transfer their mechanics into a visual game. The third one in theory could be a fully visual game. It would have just cost a lot more to create. All scenes would have an associated hefty development price tag, which in turn would have meant that the developers would have had to design the game much more economically.

Because of their medium the developers of 80 days can afford to have a crazy branching story structure. You literally can go anywhere on the globe and find different adventures! If each of those "scenes" were fully developed 3d game elements this would be impossible. Not even an AAA studio could afford to do that.

1: https://ifdb.org/viewgame?id=aearuuxv83plclpl

2: https://ifdb.org/viewgame?id=o2ghqa7oal5f3y0z

3: https://www.inklestudios.com/80days/