I think it mostly has to do with Nintendo getting their handhelds out the door as quickly as possible to ensure that they are relevant when they hit the market (especially with competition on the way). And obviously Nintendo sees the advantage in this, as they continue to work on the device and release new editions as soon as they're able.
You're forgetting this one, too:
1. Original Gameboy
2. Gameboy Pocket (smaller size, better screen)
3. Gameboy Lite (Japan only - backlit Gameboy Pocket)
4. Gameboy Color
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