The formalized theory of arithmetic has usually $(+, \cdot, 0, s)$ as its language. However, from what we usually do in ring theory, it seems natural to use $(+, \cdot, 0, 1)$ as the language of arithmetic.
Why do we use the successor function, not the constant 1, when we formalize arithmetic? Are there any practical, philosophical or historical reasons behind this?
There is no significant difference between $(+,\cdot,0,1)$ and $(+,\cdot,0, s)$. They will be interchangeable, modulo rewriting some terms, for essentially every purpose. If there is any preference between the two, it is likely personal preference or tradition, rather than some technical mathematical reason.
There is a much more important difference between $(0,s)$ and $(+,\cdot, 0,s)$. The former is sufficient when we formalize the natural numbers in an ambient theory, like set theory, that allows us to define $+$ and $\cdot$ from $s$. This was the context of Peano's original work.
But, if we formalize arithmetic on its own, the signature $(+,\cdot, 0, 1)$ (or equivalent) is needed, because the first order theory of the natural numbers in the signature $(0,s)$ is not able to define either $+$ or $\cdot$, and neither of those operators is definable from the other. The theory with just 0, successor, and addition is known as Presburger arithmetic, and is a well known example of a weak system of arithmetic. The first-order theory Peano arithmetic is axiomatized in a language that includes $+$ and $\cdot$ as basic operations.