Don't really know. Probably because of the geography. Greece is mountains and islands, mostly, so I guess every small valley and island got its own ruler, but it was hard to control a few of such isolated population pockets at the same time, so each population developed into its own state, instead of all of them being controlled by a single large state. As to why they colonized the neighbors, obvious - population pressure and lack of resources.
Anyways, I hope this helps, but this is a speculation, not a fact.
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