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You still sleep at night and have businesses open during the day. It's just that the numbers displayed on the clock are different when this happens. Maybe standard business hours are 2-10 or 14-22 instead of 9-17 (I advocate 24-hour clock instead of AM/PM).
The issue (as the link illustrates, but I didn't go into detail) comes with long distance communication. Time zones serve as a rough approximation for 'where is the sun' at a specific place that you want to communicate/trade with and that is a rough approximation for 'when are people/places likely to be awake/open. Without that you Would need to find published hours for people/places and that can be tough.
Replacing time zones isn't impossible of course, but it's definitely not as simple as 'just use UTC+0'. That shifts the inconvenience elsewhere