Implementing parallax effects with Intersection Observer provides several advantages: 1) It's more performant than scroll event listeners as it's optimized by the browser, 2) Multiple thresholds allow smooth transitions without constant calculations, 3) The intersectionRatio provides a natural progress value for animations, 4) It automatically handles different scroll speeds and devices. The code demonstrates creating smooth parallax movement based on intersection ratio, with 50 threshold points for fluid animation.