The lossy compression schemes used to be pretty simple, so they're a fast and easy way to reduce file size quickly, as older low-end cameras didn't have a ton of memory (costs money, y'know, and a modern camera has a few GB of RAM nowadays) or sometimes didn't support the newest/fastest card standards. In terms of IQ there is rarely a difference.
Most cameras offer lossless compressed raw these days, some (e.g. the low-end Nikon Zs, and also the flagship Z9) don't even have uncompressed raw anymore, only lossless compressed or a choice of lossy options. Much to the chagrin of some people, a particular Youtuber especially, who make a huge deal out of using uncompressed raw. The person in question doesn't understand what the word "lossless" means and claims there's a difference between losslessy compressed raws and "true uncompressed" raws.
Most cameras offer lossless compressed raw these days, some (e.g. the low-end Nikon Zs, and also the flagship Z9) don't even have uncompressed raw anymore, only lossless compressed or a choice of lossy options. Much to the chagrin of some people, a particular Youtuber especially, who make a huge deal out of using uncompressed raw. The person in question doesn't understand what the word "lossless" means and claims there's a difference between losslessy compressed raws and "true uncompressed" raws.