If it helps to visualize the signal path:
IN:
Instrument --> amplifier or DI --> Mixing board of PA
Voices --> microphones --> Mixing board of PA
OUT:
Mixing board of PA --> main speakers --> Audience (front of house, of "FoH")
Mixing board of PA --> monitors --> band members
Using IEMs and going ampless are two unrelated things. Going ampless is an "IN" option: if you have a good DI and a good PA, you have the option of not bothering with an amp and letting the PA be your amp. Using an IEM is an "out" option. The band can monitor its own sound using speaker wedges, or an IEM can let them have it directly in their earbuds.
The biggest advantage of an IEM is volume; you can dial the level down to something safe for your ears, while isolating out your drummer's thrashing around, and save your hearing. If you rely on wedge monitors, they need to be loud enough to be heard over the drums etc., and you have a loud stage overall. Also, if the mixer has the capability, each IEM user can have their own tailored mix, a little more of this and a little less of that, to optimize your own performance. For example, a lead singer may perform better if they hear their own voice more and aren't distracted by harmony backups, so they can have the backup singers' mics lower in their IEM mix or taken out altogether. There's no need for everyone to hear everything the audience is hearing if they don't want to.
The disadvantage, for starting-out musicians, is cost; a cheap IEM system will run several hundred dollars and a good one over a thousand at least, so that's an investment that someone who had to scrape to get a $300 Squier is probably not going to be ready for. A garage band with a limited budget will probably go with a couple of $200 wedge speakers rather than $1400 per member to each have an IEM. Also, some people don't like the sense of isolation when using an IEM; you only hear what's being fed through the board, so there are other sounds like the noise of the crowd that you don't get. That can be fixed by running additional channels with additional microphones to pick up ambient noise, but of course that means a bigger PA mixer and more gear which costs more money, so also an obstacle to a band on a limited budget.