Parsing function can return any of the types, we don’t know what was in the bytestring. So we’d need to deal with all variations in any case, no?

Yes, the parsing function could return anything, but that's not the exclusive source of values of the GADT.

So, yes, when consuming the output of the parsing function, you have to deal with all the variations. But, when you have types that reflect some information is known about the type index, you only have to deal with the matching constructors.

This is particularly important given the copy-paste transport of code from one context to another. You might have some code that works for a MyGADT MyType and doesn't handle all the constructors. But, when you transport that code elsewhere and ask it to handle a MyGADT a, the type system will correctly warn you that you haven't handled all the cases. This is an improvement over writing something like case x of { Right y -> stuff y; Left{} -> error "Can't happen; won't happen"; }, since I'm sure works fine in the right context, but doesn't have a type that reflects what the programmer knows about x so if it is transported to a context where that information/assumption is no longer true, that's only discovered at runtime. (This isn't the best example, but it's what I have for you.)