system
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human
On what basis is it decided that which medicine will be in form of capsule or tablet?

I have opened many capsules and found a variety of type of medicines, like granules or powder but can't they be pressed into tablet form? 
Since most of the tablets are hard pressed powders (i might be wrong on this)
gpt
Tablets are generally for medicine who you want to dissolve and absorb without regulating the speed of which they are absorbed or where they get absorbed 

Capsules, depending on the type of medicine, gives you control over that. Some capsules can tolerate stomach acid to protect the medicine and then dissolve in the small intestine to allow the medicine to bypass the stomach. 

Other capsules are just there to allow the medicine to be released faster than it would have if it was a tablet. These are fast dissolving capsules 


Capsules with little medicine tiny balls are usually extended release, where the main capsule would break in the early small bowel and then the small balls would actually have different dissolution rate, so some would dissolve quickly, others dissolve slower so you would get some medicine being absorbed for an extended period of time.

Tablets can also be modulated to control how they dissolve, but not as good, so it is really up for what the manufacturer think will work best.