Why would users prefer to use a diluted layout when given the choice?

Some web apps from Google such as Gmail and Drive offer a "comfortable" option with lots of wasted white-space, which I'll refer to as being diluted for lack of a better term.

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I'm creating a web app, and I'm currently deciding between implementing a normal layout, or a diluted layout.

My question is, why would a user choose a diluted layout like this:

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Over a more sensible layout like this:

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  1. How is the diluted layout practical/justified?

  2. If I should consider implementing it, why?

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