This factory function follows the composition over inheritance principle: 1) It uses object composition to build entities with different capabilities, 2) It avoids deep inheritance hierarchies by adding specific properties directly, 3) It creates objects that only have the properties they need, 4) It's more flexible than class inheritance as it can mix and match features, 5) Different entity types can share some behavior while differing in others, 6) This approach is favored in JavaScript for its flexibility and simplicity.