Tiles:
- allow worlds of unlimited sizes to be represented by a small texture (the tileset), which is faster to load, lightweight to store in video RAM and more efficient to process by the graphics card
- provide a logical representation of the world, which can be used for collision detection etc., not just for drawing
- make it easy to edit the world (no need to deal with an image editor)
- allow different tilesets to be applied to the same world (probably not THE big feature, but why not?)
Huge images:
- probably exceed the maximum texture size allowed by graphics cards, so they have to be split anyway