Pros and cons of package private classes in Java?

I am learning Java recently, and I came across the notion of package-private classes, which is the default if we don't specify anything. But then I realized:

1. I seldom see the use of package-private class. Is there a reason for this, e.g., it has serious drawbacks, it is redundant, or simply I am not reading enough? Are there strong arguments for/against its usage?

2. If it is really not useful in most cases, why would it be the default?

3. In what situation should we use package-private in the real world? I.e., when would it become irreplaceable?

In other words, what are the major pros and cons of the default package-private modifier?