[pests]

You still are sending packets over your router, to your ISP, out into the internet, and to the destination server. You leave fingerprints everywhere (browser, os, resolution, fonts, enabled features, cookies, etc.) Forever cookies, DNS cookies. The list goes on.

You are being tracked at the very least as an abstract person. If any of the above fingerprints are linked to a real identity (logging in just once even, or posting your email on a forum) then you are now being tracked even logged out.

If you use Tor and log into services it has no benefits. Tor, the browser and other distributions, will still leave fingerprints but they will no longer be unique and match only you but everyone using tor.

Tor, the protocol, will hide that you are the one receiving or sending packets.

"why Tor would be any better than simply browsing in incognito mode"

Incognito mode does nothing to hide packets or source/destination you are communicating to. Your ISP could literally pull up all non-https sites you visited along with their content, assignable to you, airstrike, as a person. Tor would block this.