So if I understand you correctly, the AirPort Extreme (and the Airport Express that pre-dated it) were only necessary because, at the time I only had a simple modem and needed it to create a wifi network.
Correct. A simple modem has only one Ethernet port, so you can only connect one device to it. That is not a problem if you only have one computer. But....if you want to have wireless network or even connect more devices using a wired connection, you need to have a router, which connects to the modem and then your network devices connect to the router.
Some time ago, most manufacturers began to offer both a modem and a router in one single package......because it made things much simpler for the vast majority of users. Who did not want to fool with setting up two devices, both a modem and router.
So, modem/routers, also known as gateways, have become very popular. Unfortunately, most users still call a modem/router or gateway a "modem"......even though it is also a router.
Apple could have made things a lot easier if they had decided to sell modem/routers or gateways, but they never did, except for one ancient device. The unfortunately truth is that most folks who bought an AirPort router did not really need it......because they also had a modem/router or gateway.
It did not hurt to have the AirPort with a modem/router, but it also did not really help.
can you tell me (in terms I can understand), how to set up the new network using only the router?
It should already be set up. Look for the name of the wireless network that the modem/router is providing and connect your devices to that network. For example, if the modem/router provides a wireless network signal with a name like......."Arris Wireless".......you would connect your devices to that network.
Information about the wireless signal and password is sometimes located on a label on the back or bottom of the product.
Sorry, I can't help on the specifics of the modem/router or gateway that you have. If your Internet Service Provider furnished the product to you, you need to get with their support folks for additional information.