When updating state in a React component, using functional state updates (e.g., setSlider(slider => slider + 1)) ensures that each update is based on the most recent state value, preventing potential bugs caused by outdated values. This method is particularly useful when dealing with frequent or rapid state changes in web development. Understanding the difference between direct state updates (e.g., setSlider(slider + 1)) and functional state updates can help improve state management in React and ensure that your application behaves correctly even under quick state changes. The analogy of managing marbles in a bag helps illustrate the importance of using functional state updates for a more reliable and robust application.