From my point of view, the "most natural" structure is to be found in the middle of the two structures, namely the one of monoid. A monoid is just a set with an associative operation, and an identity with respect to this operation. Examples are: groups, rings with respect to multiplication, endomorphisms of an object..
The reasons why I think group theory is so successful are several:
- Its theory has deep roots in Galois theory, which has shown some very advanced mathematics for its time;
- It is at the midpoint of a wide variety of approaches and applications: algebraic groups, invariant theory, classifying groups in algebraic topology, K-theory in homological algebra, representation theory in linear algebra and lot more, differential geometry with Lie groups, connections with (semisimple) Lie algebras, combinatorics in finite group theory, graph theory in the study of free geoups... It's really incredible.
- All such quoted theories are surprisingly well understood and shows rich but not impossible structures.
However - there is always an however in good stories - sometimes it's us human that needs additional hypothesis to better study and understand things. That's why, also in the case of finite groups, many people for example will concentrate on p groups, and so on... Maybe, that's why we concentrate on groups and not on general monoids, isn't it? But let's take a step back. What we are doing? What we want from an algebraic structure? Where do they generate?
Let me introduce you the concept of Operad. An Operad is a collection of sets $O(n) $, that you should think as corollas with $n$ leaves directly connected to a root below. Such operad comes equipped with a way of composing such corollas
$$\theta: O(n_1) \times \ldots \times O(n_k) \times O(k) \to O(n_1 + \ldots + n_k) $$
Here you have to think that you are "plugging in" the k corollas with respectively $n_1, \ldots, n_k$ leaves into a corolla of k leaves, to get a corolla of $n_1+\ldots+n_k$ leaves. This "composition of corollas", when you plug in three layers, should be somehow associative. Doesn't matter however.
Let me give you an example of an operad. This is very important. Take an object X in a monoids category. If you are not comfortable with this, you can imagine this is a set, a vector space, a topological space... The corresponding notion of endomorphism will vary as you imagine. Monoidal here roughly means that you can do the direct product, and let's assume that it is a coincidence with our monoids for the moment.
Define the endomorphism operad $End_X$ as having $End_X(n) = Hom(X^n, X) $, and the composition of corollas is given by
$$ \theta(f_1, \ldots, f_k, g) (x_1, \ldots, x_k) = g( f_1(x_1), \ldots, f_k(x_k)) $$
Where $f_i: X^{n_i}\to X$, $x_i \in X ^{n_i}, g: X^k \to X$. This is a bit difficult to digest, but you can imagine you have plugged in your inputs $x_i$ in the corollas (which are the $f_i$ and $g$) and let them flow to the root.
Let me give you another two examples. Define $Ass$ to be the operad that has in degree $n$ the symmetric group $S_n$ and the composition is given in a weird way, but you will understand it in a moment. Note that $S_n$ is in bijective correspondence with the possible ways of ordering $n$ variables in a product. Define $Comm$ to have just one element in any degree.
A last boring definition. A morphism of operads $O \to P$ is a degreewise map $O(n) \to P(n) $ that commutes with corollas composition. Suppose now you have a morphism of operad $Comm\to End_X$ for some $X$. What does this stands for? Well, for example, the image of the unique element in $Comm(0)$ defines an element in $e \in Hom(X^0,X)\simeq X$. It also chooses an element $\mu \in Hom(X^2, X)$, by taking the image of the only element in $Comm(2) $. If you check carefully the commutativity relations of an operad morphism, you will discover that this $\mu$ should define a commutative and associative product on $X$, and that $e$ should be the neutral element wrt $\mu$. Conversely, a commutative and associative structure on $X$ with a neutral element defines such a morphism. Cool, isn't it? You can do the same trick with $Ass$, and you will discover that he is responsible for the creation of associative products.
In analogous ways, you can produce a wide variety of operads that encode several algebraic structures. Monoids, for examples, are encoded by $Ass$. There also Lie Algebras, Rings, Hopf Algebras, Little disk Algebras, Gerstenhaber Algebras, Poisson Algebras... There is also a great feature of this way of crafting algebraic structures: relatioms that holds with an equal can be relaxed to hold with an "homotopic to", and all homotopies appearing in this way can be organized into an higher structure. Infinity category deals with formalizing this stuff. That's a bit of an " adult" observation, but I swear you it can be of concrete importance (it is for example in my present work).
But... Operads can't encode groups! You can just say that are special kind of monoids, but there isn't any operad "Grps" encoding the axioms of a group. This is not my main argument, though; the main thing is that all the construction we made relies upon monoidal categories, which are fundamental to all of the factory of algebrsic structures. And yes, a symmetric monoidal category is in first approximation exactly a monoid in which we use categories to encode the axioms: is a category $C$ with a functor $ \mu: C \times C \to C$ that is associative, and with a "neutral element", i.e. an element $1 \in C$ such that $\mu(X, 1) \simeq X \simeq \mu(1, X) $. There is some relatioms that this isomorphisms should satisfy (penthagon relations I think), but this is a technicality). In Lurie treatment of Infinity categories, which is at the boundary of algebra and topology, one cannot live without symmetric monoidal categories (but could live without group theory).
Sorry for the lengthy answer. Please comment and let me know what you think! I am myself doubtful about this monoid-groups battle... I think I'll opt for polygamy in the end :)