You're confusing switches with macros. While the former is still a macro (in the TeX sense), it does not take an argument. As such (and I'm using the preferred choice as contained within Does it matter if I use \textit or \it, \bfseries or \bf, etc), using
\itshape{hello} world
makes \itshape span within the group that it's used, and there's none there. However,
{\itshape hello} world
prevents the switch \itshape to span outside the group in which it's used. \texttt (and friends) take an argument, and then place it inside a group. You can see this by viewing the .log file after compiling the following MWE:
\documentclass{article}
\def\pshow#1{{\let\protect\show #1}}% https://tex.stackexchange.com/q/117169/5764
\begin{document}
\pshow\texttt
test
\end{document}
The .log shows
\texttt =\long macro:
#1->\ifmmode \nfss@text {\ttfamily #1}\else \hmode@bgroup \text@command {#1}
\ttfamily \check@icl #1\check@icr \expandafter \egroup \fi .
where you can clearly see \texttt{<stuff>} translates to the grouped {\ttfamily <stuff>} (simplified).
\itand\bf, but\itshapeand\bfseries, see Does it matter if I use\textitor\it,\bfseriesor\bf, etc. – Torbjørn T. Dec 17 '13 at 21:03\bfseriesis to\textbfas WHAT is to\textsf… – Tobi Dec 17 '13 at 21:40