(Hi, I’m on the rust-analyzer team, but I’ve been less active for reasons that are clear in my bio.)

> Language servers are powerful because they can hook into the language’s runtime and compiler toolchain to get semantically correct answers to user queries. For example, suppose you have two versions of a pop function, one imported from a stack library, and another from a heap library. If you use a tool like the dumb-jump package in Emacs and you use it to jump to the definition for a call to pop, it might get confused as to where to go because it’s not sure what module is in scope at the point. A language server, on the other hand, should have access to this information and would not get confused.

You are correct that a language server will generally provide correct navigation/autocomplete, but a language server doesn’t necessarily need to hook into an existing compiler: a language server might be a latency-sensitive re-implementation of an existing compiler toolchain (rust-analyzer is the one I’m most familiar with, but the recent crop of new language servers tend to take this direction if the language’s compiler isn’t query-oriented).

> It is possible to use the language server for syntax highlighting. I am not aware of any particularly strong reasons why one would want to (or not want to) do this.

Since I spend a lot of time writing Rust, I’ll use Rust as an example: you can highlight a binding if it’s mutable or style an enum/struct differently. It’s one of those small things that makes a big impact once you get used to it: editors without semantic syntax highlighting (as it is called in the LSP specification) feel like they’re naked to me.