Eigenvalues and eigenvectors simplify the analysis of square matrices by allowing them to be expressed in a diagonal form, making calculations easier. A matrix can be diagonalizable even if not all eigenvalues are unique, provided that all eigenvectors are linearly independent. Eigenvectors represent directions where the linear transformation acts as scalar multiplication, with the corresponding eigenvalue indicating the factor of stretching or compressing. The process of finding eigenvalues involves solving the determinant equation det(A - λI) = 0, linking it to the Kronecker delta in tensor calculus. Understanding these concepts is crucial for applications in various fields of mathematics and engineering.