There are some problems with vanilla options on Ethereum and more broadly for some market participants. The markets for options are stratified across two dimensions, strike and expiry. Markets must constantly be opened up and closed based on price movements and time movements. This fragments liquidity and makes it costly for market makers to update their offers. These problems also exist in traditional markets but to a lesser degree due to the fact that there are no gas costs.
Many people trade options to get a convex payoff function with respect to the underlying asset. This means that for a small upfront investment the investor is able to get a large gain if the price increases(decreases) for a call(put). They also have limited liability. This represents the single biggest difference between leveraged products and convex products. When you trade with leverage it is entirely possible that the asset reaches your p