I think of magic systems--and worldbuilding in general--as something akin to a kitchen pantry. Sure, I can cook a meal and have only the ingredients for that meal, and everyone still eats. But I like to think that having a full stock of spices, plenty of vegetables, different meats, breads, etc. means I can be more creative in the cooking.
That's how it feels when I write. By having far more available to me, I can put greater variety into the story, throw more interesting challenges at my characters. Also, having a fairly complete (it certainly can turn into an obsession) system of magic means I know the constraints. I know what magic cannot do, and why. That, too, is important in story telling. If I work from a blank slate, literally all things are possible. I'll go a bit further: we're not really working from a blank slate, because the story doesn't actually drive anything. We do. The authors. And each of us come to the page with a set of assumptions about magic that will inform all our writing. By doing formal worldbuilding, we can examine those assumptions and maybe turn a few inside out. Maybe you can do that on the fly, mid-sentence, but I sure can't. Every writer differs, of course.
I'll try for one more comparison. The more worldbuilding I do, the more it feels like I've been there. And that means I'm going to be better at describing it, bringing it alive to someone else. Everything can be over-done, of course, but just because there's a possibility of over-cooking that steak is no reason not to cook it at all.