Why is the rational number system inadequate for analysis?
Look at the picture below which shows the graph of a "continuous function" (intuitively, a function whose graph is an unbroken whole, without interruption).

Fundamental Property (FP): The points $(a,f(a))$ and $(b,f(b))$ are connected by a "continuous curve". Since the point $(a,f(a))$ is above the $x$-axis and the point $(b,f(b))$ is below the $x$-axis, there is a ponit $(c,0)$ where the curve crosses the $x$-axis.

Is the Fundamental Property true? Well, at least it should be true. According to Michael Spivak:
If the pictures we draw have any connection with the mathematics we do, if our notion of continuous function corresponds to any degree with our intuitive notion, the Fundamental Property have got to be true in our theory. (Spivak's book).
Unfortunate Fact: The rational number is indeed a (ordered) field, but the properties of an ordered field are insufficient to prove the Fundamental Property. Even more, we can prove that the Fundamental Property is not valid in the context of $\mathbb Q$.
Conclusion: The Fundamental Property is a result that we want to be true because our intuition of continuity says that it should be true. Building our theory of continuity on the basis of the rational numbers, the Fundamental Property fails. So, the rational number system is not adequate for analysis.
Of course, we can define the fundamental concepts of Analysis (limits, continuity, derivability, integrability) in the context of $\mathbb Q$ and prove some things. But there are a lot of results that depends on the Fundamental Property. If we abandon it, we can't move on; the development of theory stops.
The above discussion refers to the context of continuity. However, similar arguments applies to other analysis issues. Here is an illustration in the context of the integration:
The development of the Integration is based in (some variant of) the following idea:
The area of a circular region can be approximated by an $n$-sided inscribed polygon.

Let $A_n$ be the area of the $n$-sided inscribed polygon. As $n$ increases, $A_n$ becomes closer and closer to the area of the circle. (Larson, Stewart)
If we want formalize this idea, we need ensure that there exists a number (which we will call "area of the circle") being approximated. So, we need of the
Second Fundamental Property (SFP): every increasing sequence bounded above tends to a limit.
Unfortunate Fact: the Second Fundamental Property is not valid in the context of $\mathbb Q$.
Conclusion: Building our theory of integration on $\mathbb Q$, many "well behaved" regions would not have a well defined area. This fact would be not satisfactory. So, $\mathbb{Q}$ is inadequate for a satisfactory discussion of analysis.
Remark: The FP and the SCP are equivalent and characterize the completeness of $\mathbb{R}$. As viewed above, is the absence of this characteristic that makes $\mathbb Q$ inadequate for analysis. The FP is know as the Intermediate Value Theorem and the SFP is know as the Monotone Convergence Theorem.
Remark 2: In short, my point is the following: The purpose of (elementary real) Analysis is to make the Calculus rigorous. The Calculus was developed on the basis of geometric intuition. In a world where there are only rational numbers, some of these intuitions fail (as shown above). So, in such world, these intuitions could not be made rigorous but would have to be abandoned. This is the reason why $\mathbb{Q}$ is not appropriate to do Analysis.