Why convert an analog signal into a stream of pulses
In brief, because it is very easy to regenerate pulses at the receiver into the ideal form transmitted. The only part of the transmitted waveform required at the receiver is the time at which the pulse occurred. Given the timing information the transmitted waveform can be reconstructed electronically with great precision. In contrast, without conversion to a pulse stream but simply transmitting the analog signal directly, all noise in the system is added to the analog signal, reducing its quality.
Each pulse is made up of a step up followed after a short interval by a step down. It is possible, even in the presence of electronic noise, to recover the timing of these steps and from that regenerate the transmitted pulse stream almost noiselessly. Then the accuracy of the transmission process reduces to the accuracy with which the transmitted pulse stream represents the input waveform.