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Substitution is a way to solve without graphing, and sometimes there are equations that are impossible or very difficult to graph that are easier to just substitute. Mostly though, it is a way to solve if you have no calculator or cannot use one (for a test or worksheet).
There is no simple answer. Sometimes, the nature of one of the equations lends itself to the substitution method but at other times, elimination is better. If they are non-linear equations, and there is an easy substitution then that is the best approach. With linear equations, using the inverse matrix is the fastest method.
No, there are several methods.
You can solve the system of equations with three variables using the substitute method, or using matrix operations.