Demand and practicality. It's much harder to use a RLCD. Remember how everyone used to complain about how bad the GBA screen was and how bright a light you needed to view it? Early laptops had RLCDs too but those are harder to use on a plane or train and color only makes it harder.
Because as far as I know reflective LCDs came before backlit LCDs and have been around for over 30 years.