The point is we want to say a curve is smooth, for example $C^1$ (continuously differentiable), if it has a smooth parametrization. And without that condition on non-vanishing derivatives that would admit "smooth" curves that we really don't want to call "smooth".
Example: Consider the curve in the plane defined by $y=|x|$. That has a corner at the origin - our definition of "$C^1$ curve" had better not include this curve, right?
But define $x,y:\Bbb R\to\Bbb R$$f,g:\Bbb R\to\Bbb R$ by $y(t)=t^2$$g(t)=t^2$ and $$x(t)=\begin{cases} t^2,&(t\ge0), \\-t^2,&(t<0).\end{cases}$$$$f(t)=\begin{cases} t^2,&(t\ge0), \\-t^2,&(t<0).\end{cases}$$Then $x$$f$ and $y$$g$ are both $C^1$, and $(x(t),y(t))$$x=f(t)$, $y=g(t)$ is a parametrization of the curve $y=|x|$. Without the condition on non-vanishing derivatives this would make $y=|x|$ a $C^1$ curve. (With the condition on non-vanishing derivatives everything's fine - this parametization is disallowed because $x'(0)=y'(0)=0$$f'(0)=g'(0)=0$.)