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I like to imagine what it would have been like to have more choices per poke, but less pokemon overall from the start of Gen1. Primary types would be the unchanging. For example, every part of the spearow line would be flying, but only the ones on the first couple routes would be flying/normal. The spearow near the power plants would be flying/electric. This would also mean that each subspecies would have a couple typed moves. Some pokemon (legendaries at least) would have set types. The safari zone would probably have some rare and (potentially) powerful type combinations.
Of course the memory allocated for this would mean less overall pokes in each generation due to the increased amount of art assets and move list needs. Breeding would have to factor in type variation along with eggmoves, natures, and abilities. There would be a greater number of pokes with branched evolutionary lines. Night and day in gen 2 could have a difference between psychic/ghost or fighting/dark subtypes as well as totally different pokemon. Castform and Rotom's type changes might be less gimmicky and more par for the course in this new world.