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Its because they refused to use any old mons and had to keep the Gamefreak sweatshop employees up all night designing all new shit for every niche and every gen 1 trope. Of course this limited creativity, and the bloat of the dex at a point when they were clearly already running out of ideas. (look at gen 4 and half of 3's designs) if they would have kept new mons to about 100 and really polished them, and maybe bit the bullet and just used zubat and machop etc instead of making knock off clones. I wouldnt say its the worst generational dex though. Thats probably gen 3. Gen 3 almost killed pokemon.
Inb4 salesfags
You know what I mean.