I. this/ that - distance in time.
We use this (singular) and these (plural) to talk about things close to us, and that (singular) and those (plural) to talk about things at some distance away from us.
Temporal "this and that" - Similarly with reference to time "this" means a present situation . "that" means a past (distant) event.
This is a good book. (I am reading it now).
That was a good book. (I read it at some time in the past)
II. Why both "this/ that" are natural in 1a and 1b..
(1a) It's raining. This is why nobody is sunbathing now. — natural.
(1b) It's raining. That is why nobody is sunbathing now. — natural
Both the sentences show "cause and effect".
In 1a, we are speaking about a present situation.
In 1b, we are considering an established condition and connecting it to the current situation.
As discussed earlier "this" is present and "that" is past. The same logic applies.
Another example where both this/that are valid.
"It's been raining all day. This/ That is why the streets are flooded.
III. Why only "that" is natural in 2a and 2b..
(2a) It's raining. This is why I won't go out. — very unnatural.
(2b) It's raining. That is why I won't go out. — natural.
In this situation a decision is involved, which was taken earlier.
This" is unnatural in (2a) because the decision was made based on a known condition (the rain).
Here are additional examples where only "that" can be used:
- I read the reviews. That's why I chose this restaurant. (Reviews influenced the choice.)
- My doctor advised me to rest. That's why I'm taking the day off. (Doctor's advice led to the decision.)