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Why were they pushing chocolate flavored cereals in the 80s and 90s?

They all sucked, none of them tasted like actual chocolate. They tasted like "chocolate", emphasis on the quotations
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When manufacturing modern chocolate, cocoa powder is a byproduct (because chocolate requires extra cocoa butter).

So they've got this relatively inexpensive flavorful powder that tastes sorta like real chocolate; they market it to kids who don't have very discriminating palates; and it sells.

You'll notice most ice cream marketed as chocolate is actually cocoa ice cream (read the ingredients). In addition, many candy bars that used to be coated with real chocolate are now coated by a compound made of cocoa powder suspended in a neutral tasting fat that sorta simulate cocoa butter.