A fairly decent answer is the that it would add too much power to small attacks thus hindering the entire defensive spectrum of the game, a fire fighting move would indefinitely hit a steel type for a free 4x damage(or maybe more than that on Ferrothorn) almost guaranteeing a knockout every time, in other words there would be no defensive pokemon anymore, and even more typing to calculate in an attack would easily make the game less enjoyable. In other words, they pick one to keep it a simple as possible.