1: They always talked about times long before Oak where humans still had Pokemon interaction, not seeing how there would only be around 100 Pokemon available to them within their knowledge.
2: Although they might not yet have industrialized Pokeballs, having to find and hand create them seems a bit more than players would want. You usually just buy those things.
3: Befriending each Pokemon you want would be annoying as forget. What's the point if you still catch them the same general way?
4: Hopefully the drawings aren't saved, because I could imagine how terrible most would be.
5: I can understand Boxes haven't been invented yet, but being forced to a 12 Pokemon Limit at individual Daycares sounds annoyingly cumbersome. Having to remember which has which Pokemon, where you should put some. What if you fill the Daycare and your inventory of Pokemon? You'd have to find another Daycare if you want to switch them around... Of course, that could be solved by a trading transfer, but still...
Where is that image from? The baby versions of the Legendary Birds seems obviously fan art, as baby Pokemon don't resemble the fully evolved form that much...
Edit: Edit2: After looking up for a moment, that image comes up as early as 2009. Sad that it's complete fan fiction, for you at least. D: