Why does the platform have a setup app, rather than simply being downloaded as a zip file? What requires the setup app?
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Even if the platform is portable in all its entirety, the setup gives more options:
“Life is a strategy game, where roles are already distributed”
― Neo Buddha ―
What Anti said above (choice of install locations, detection of existing installs to upgrade, UI language setup...) plus the ability to update files and move them around when required, smaller download size, automatic detection of tampering with the package, digital signed EXE, etc.
It's basically many of the benefits of PortableApps.com Format plus some platform-specific stuff: https://portableapps.com/about/what_is_a_portable_app#whypaf
Sometimes, the impossible can become possible, if you're awesome!
I don't see why choice of locations is relevant, since you can get that with a zip file. The other stuff makes sense though.
The user may not know where their cloud folders are, for instance, when trying to browse using the Windows directory selection box if they don't have it pinned in Explorer. For example, DropBox is C:\Users\USERNAME\Dropbox. And it selects default locations for either personal use or shared use that the PA.c Installer can automatically find.
Sometimes, the impossible can become possible, if you're awesome!