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Old October 3rd, 2012 (6:27 PM).
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Xander Olivieri Xander Olivieri is offline
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Sorta going with what Jellifan said. There were other issues as well. It was a pain to trade between Gen 1 and Gen 2 because of all the rules for trading. Transferring backwards would follow those strict rules which Jellifan posted. Its also a step backwards. When the newer generation appears, they tend to stop support of the older games.

With Gamefreak and TPC always pushing forward and showing support to the newer games, it could prove a bit bad for business for them to include a reverse trade method for games they don't support.
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