Instantiation by name improves readability as there is no need to look to the entity definition to know the connection between port and signal. It reduces risks of inconsistency between the entity definition and the component instantiation in case of entity modification.
mux1 : Mux port map (i_Mux_Input1, i_Mux_Input2, i_Sel, o_Mux_Output);
mux1 : Mux
port map (
i_A => i_Mux_Input1,
i_B => i_Mux_Input2,
i_S => i_Sel,
o_O => o_Mux_Output
);