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Because it has bad luck.
In Gen 1, it had pretty dece stats beside an awful Speed. When Gen 2 entailed the Special Split, Flareon had a choice: get more bulk for its low speed but have a bad Special Attack, or keep its better offense for worse defense.
Also, there is no physical Fire priority move. And Flareon didn't get Quick Feet or some other Speed-fixing ability through Dream World. And it took GF this long to give it Flare Blitz.
