Homestead is preferred because you can setup a similar environment as your production server and if you're using more than one computer or more than one person, you can share the configuration.
I've been using WAMP and XAMPP on Windows 7/8/10 for a long time and it works fine for simpler projects. But on more complex project I ran into problems and decided to switch to Homestead, which I use now and enjoy. I'm also doesn't hurt that I get to learn a little Linux as a bonus.