If I understand it correctly the Trezor wallet creates 100 address and provides seed words to recreate these later if the device stops working.
But when I create a paper wallet then just one address is created.
What's the advantage of creating a large number of addresses and why do hardware wallets like Trezor create so many?
One of reasons is that you understand from which source come the bitcoins which arrive in your wallet. So if you wait to have bitcoins from 5-6 sources you give every source one different address (and name) and understand from the address which source has sent your bitcoins and which not. Then do the needed actions to have the bitcoins which were not arrived in the right sources. This can be knew exactly from the address you gave to every source.
Same thing make every bitcoin wallet (at last coinbase which I use now do this and bitcoin core wallet which I used before).