There are several reasons. I'll devide them into to groups.
Fundamental reasons:
1) The tram is a heavy vehicle running on rails and uses heavy spring shocks with one degree of freedom of movement (to tilt side to side). The bus is a light vehical with softer shock springs which have 360 degrees of freedom of movement. That is, that the bus can shake up/down, side to side, forwards/backwards and anything inbetween. This is the biggest difference. It is much more comfortable to be in a stable vehicle than one that rocks like a boat. You can read much more easilly on a tram than on a bus.
2) Related to the first reason, the tram has no rocking caused by breaking, as the forward/backwards up/down rocking motions are impossible due to the restriction of movement caused by the rails and the weight of the vehicle
3) The fact that the wheels are hard means that it is much more efficient.
4) Tram cars are significantly wider than busses and therefore have much more comfortable inside spaces.
5) Since the rails are always in the same place, you can design a tram with almost no gap between the platform and the floor of the tram, so that a person in a wheel chair/with a stroller can ride in without any ramp!!!!
6) Due to the heavy build of the tram, and the fact that there is no internal combustion engine or batteries that would wear out, trams last cca 3x longer than busses. This will always be the case. It is like the difference in lifespan between a brick house and one made of mud.
7) The wheel wells of the tram are shorter, making for a much more open, less awquard space.
8) Due to the width, stability, and length of the tram, it is possible to walk to the other side of a non-crouded tram to get away from an alcholic person.
Non-fundamental reasons:
1) Electric is better than deisel. Deisel busses are noisy, vibrate, and make toxic fumes which give many people nausia. (this isn't fundamental to busses, you can have trolley busses, or electric ones)
2) Trams have much larger windows/more window space making for a less claustrophobic ride.
3) Trams use a cellphone based tracking software for determining which stop they are at, which makes for very very smooth audio indications of where you are. The anouncment system on busses is manually controlled and sometimes the bus driver forgets to announce a stop. We even have digital reader boards with the amount of time it will take the tram to arrive, and those numbers are accurate. For busses this system also exists, but it is worse.
4) On rainy days, the bus comming into the bus stop may splash you with mud, trams never do that.
5) The trams have closed cabins for the drivers, meaning that stupid tourists cannot be tempted to ask the drivers for directions, thus delaying the journey and causing everyone stress.
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