>>44990243The answer is two-fold. As
>>44990327 said, balancing must have been their first priority when attributing Types in Gen 1. Dragon is just too good for how early you can get Magikarp and evolve it into Gyarados.
If you want a temathic reason, Gyarados isn't actually based on a chinese dragon, but on a Koinobori, a colorful carp-themed windsock. That's why its Flying type.
>>44990284Lugia is based on a mythological dragon, though. I'm not saying it's a good reason to want Lugia to be Dragon Type, but it is a reason.