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I think you have misunderstood the implementation. If you want all buttons to have a bit more padding then you either change the padding class on each button from .p-1 to .p-2 or, more likely with something like buttons, you abstract the styles into a .button class and then you can make a singular change to the padding and it will affect all your buttons.

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The first one is a find and replace nightmare on any sufficiently large project and akin to inline styling. The second negates the point of utility classes.

No, it does not. They're not exclusive. I've written large pages that pretty much only used component classes for pills and buttons, with Tailwind using @apply. All the other elements used utilities. Paired with purge-css you get small CSS bundles and really quick styling.

You'd often use something like a component based JS framework or a server rendered templating language, making it easy to contain all utilities with shared logic in one place.

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