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Well, true, that's why. Due to the small (when comparing with the current number of Pokemon) number of Pokemon in Gen 1, Dragon-types were just a small piece in the chart of Pokemon types and how many Pokemon possess the typing. And with the small run of Ice-type Pokemon to counter it + Dragons (which would need it to face another Dragonite/Dragonair/Dratini), the Dragons of Gen 1 would only be one family -- the Dragonite family. And anyways, Water-Dragon can only be beat by Dragon-types, since Ice-types only do neutral damage, so they must've made it a Water-Flying due to that horrible imbalance. But with the increase in Dragon-types, now that imbalance is already CRYSTAL clear, no more. And in that exact game and its predecessors, they truly made a Water-Dragon for the first time. They should've done that before with Gyarados...
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