Wtf, Gen 1 reads your inputs?! I'm thinking what the consequences of that are. So you could do Tackle and they do Harden and if they're quicker than you you do little damage. Or you do Rock Smash with Nidoran but they switch to a fighting type. Or you do Reflect and they do a stat boost move rather than attacking. Or you do Counter and they do a non-normal/non-fighting attack (just learnt Counter requires those types).
That's part of the SNK boss syndrome meme. The KoF AI at the highest level reads the players inputs and reacts to those instead of to the animation, so it can react with an input for a block or counter the frame immediately after the input, whereas a human player would need to either guess or wait until the move's startup animation frames and react to that. I think Street Fighter does it too. So if there are like 7 startup frames for a medium punch, if it's close enough the AI can press Throw that has 5 startup and it'll beat the punch. Whereas a human would might only react after 3 frames and would have to block instead (or just guess and risk trying a throw, which is more of a risk cuz say it was a light punch with 4 frame startup, they'll lose). I guess it may be similar in Smash Bros. Or usually if I knock you down, I'll have a frame advantage so when you get up you need to guess what I'll do. If I throw you need to either jump (can counter me) or do a throw to block it. If I do a an overhead you need to block standing. If I do either a low or non-overhead attack you can block low. If you jump or throw to avoid a throw, but I punch, you'll get comboed (assuming I know a combo and mess up the inputs). You could also do a dragon punch (invincible on startup), which'll hit me if I do anything but block, but leave you open to a big counter if I blocked. But the AI reading your inputs doesn't have to guess.
It also does stuff like only needing to block one way, whereas if you jump directly on top of a human player they have to make sure to block the correct direction.
The Pokemon stat dampening when I have zero pp was the worst, because it's like PLEASE KILL ME.