Some carts are only playable on the Colour, old GB games can sometimes use the SNES hardware in the Super Gameboy to display colours, Pokemon is an example of a game that uses the SNES to gain colour, uses the GBC to get colour, and is playable on the original GameBoy.
As for not being two separate systems, I don't know. Maybe there were a lot of GB games released even after the colour update?
I LOVE ICELAND!