In most Differentials (of the non-FWD kind) The driveshaft’s pinion gear meshes with the ring gear NOT perpendicularly, but more off-center. What makes Hypoid Better than Bevel?
Aside from the elegant tool work necessary for the curved gear teeth, the advantage is the lower set of the driveshaft, and thereby, the whole drive train has a lower center of gravity. That, despite its questionable syntax, is the whole deal.
Actually, I think the hypoid is quieter, too, because each tooth comes into mesh gradually (that is, the contact spot moves along the face of the tooth, rather than the entire face coming into contact at once).
And there’s more tooth to tooth contact for the same size gear, which makes the whole thing stronger.