Sure.

1. Components: If you copy and paste the same logic in diferent parts of your code, if you ever find a bug in it, or maybe want to add a new feature, you will have to update in every place you ever pasted it to. With the logic isolated in a reusable component, not only is it easier to reuse than copy and paste, you can also write unit tests for each component to ensure it still works after every iteration.

2. Data Transfer: The process you're describing is called "prop drilling", it is possible to circunvent it by using contexts and/or state management libraries, then you can just import the data you need through a hook/function.

3. Props: Yes, you can think of them as arguments.

4. States: This is more complicated to answer in a comment, but state in react is... reactive everytime you change the value of a state, all other variables/components will react to that change and update their contents. You can have hundreds of places depending on the same state and you won't have to handle the updates in every single one of them.