Collation is the combination of language and sort orders, and you typically don't notice it until you start running cross-database queries.
It would make development simpler if the whole world spoke one language but even if you are using English, you will still encounter collation issues if you are not careful. The most common issue is the dreaded 'Cannot resolve collation conflict for equal to operation' error when joining on columns that have different collation orders. Collation is a great feature for international companies, but if you are not consciously using it then you should have ALL the objects in ALL the databases on ALL the servers using a consistent collation.
Flexibility with collation orders has increased a lot since SQL 7.0:
However, with this column-level flexibility come additional issues. It is ideal for those who only want the column name 'FirstName' to be represented in accent insensitive sort order. However, one of the side effects, if you are not taking notice of collation, is that you end up with many different collations on many different databases.
We feel that the only time you need inconsistent collations is when you have a rogue 3rd Party application like Microsoft Great Plains that enforces its own collation.
See these Knowledge Base articles for more information about the issues you will encounter when you have inconsistent collations:
Figure: Setting the collation in SQL 2019 Setup - Choose Case Insensitive(CI), Accent Sensitive (AS)