A) because the fantasy setting lends itself to actually having monsters.
B) the often slower-paced gaming style can make a better use of a diverse "cast", as you have the time for Monster analysis, e.g. elemental resistance, magic resistance, etc.
C) it didn't plop out of the writers pen all at once. It's a vast "ecosystem" which has grown for decades, with a myriad of writers adding to the environment, as compared to a single writer who'd have to keep track of all of those monsters in one go. Compare it to let's say Egyptian or Greek mythology, same story.