< If we're expected to just have different instruments on separate tracks, why is there a function to change the MIDI sound within a track at all? >
With live applications, midi channels 1-16 can be routed to one port. Midi devices have Midi in and Midi out for routing. In live applications, it's called daisy chain, it allows two or more midi devices to be combined. Sometimes you'll a keyboard player with three or more keyboards on stage.
In BIAB, channels 1-16 can be on one track. Prior to the introduction of Utility Tracks, BIAB only had seven tracks, with midi and using channels, more than seven instruments could be used in a song.
Also prior to the introduction of Utility Tracks, BIAB included this same concept for audio files. Although there were only seven BIAB tracks and one Audio track, the seven tracks had a proprietary method to convert audio tracks so they could reside on any track, not just the Audio Track. When RealTracks came along, BIAB put this function on all seven tracks. Each track has a ten channel sub-mixer window for placing multiple RealTracks that can be configured multiple ways. Today, with Utility Tracks, a song can have 264 RealTrack instruments if all of the sub-mixer tracks are used.
Multiple midi and multiple RealTracks are available today on all 24 BIAB Mixer Tracks.