What is the intuition behind abstract homotopy theory (or homotopical algebra)? What was the motivation behind its historical development?
For homology and cohomology theory, the way I understand it, we have the notion of exact sequences and the homology/cohomology groups kind of measure how far a sequence is from being exact. This is used with the intuitive notion of cycles and boundaries in order to study objects like topological spaces. But exact sequences are ubiquitous in mathematics, not only in the context of topology, and so we have homological algebra, etc. Are there similar ideas behind homotopy theory?
I am aware, for example, of the existence of algebraic k-theory as an application of ideas of homotopy theory beyond classical algebraic topology, but also wonder as to the intuition behind how such "geometric" ideas can be applied to algebraic objects, which strikes me as one of the most beautiful but mysterious aspects of mathematics.
The notion of homotopy, or deformation, occurs in many contexts, and so it is useful to give an abstract setting which allows analogies and comparisons. Sometimes the abstract setting allows for the simplest proof, because the proof is based on extracting the essential details. It also means that the theory is available for new examples.
See this expository paper for a discussion of analogy in relation to category theory. I also like the examples and friendly exposition in the book Abstract Homotopy and Simple Homotopy Theory.
Generalisation is a basic tool in research. I found this when writing the 1968 edition of what is now Topology and Groupoids (T&G) . I was curious about the fact that a not necessarily based homotopy equivalence $f:Y \to Z$ of spaces induced an isomorphism $f_*:\pi_n(Y,y) \to \pi_n(Z,f(y))$ of based homotopy groups. What happened if you replaced $(S^n,1)$ by $(X,A)$ and translated the proof to that situation? It worked well and implied a then new gluing theorem for homotopy equivalences (now 7.5.7 of T&G)! That theorem is now part of Abstract Homotopy Theory (though the proofs there usually do not give the same control of the homotopies).
Grothendieck's Pursuing Stacks stimulated much work on abstract homotopy. Pierre Cartier in his fascinating article comments on Grothendieck's "immoderate taste for extreme generality" but I believe this taste was a tool in Grothendieck's search for understanding, for the essence of a situation. Here is a quote from a letter (12/04/83):
"Throughout my whole life as a mathematician, the possibility of making explicit, elegant computations has always come out by itself, as a byproduct of a thorough conceptual understanding of what was going on. Thus I never bothered about whether what would come out would be suitable for this or that, but just tried to understand -- and it always turned out that understanding was all that mattered."