It protect the buyer and sellers from bogus transaction and it protects the buyers and sellers' anonymity.
Escrow can ensure that the deal goes down as agreed, that's true. It doesn't do much to protect ones anonymity though, and neither does crypto if we are talking about physical goods. If the buyer sells physical items that have to be shipped to the seller, you are going to have to give them your address, name, etc. Let's be honest, very few people use PO boxes, so revealing who you are and where you are from happens often.