A base coat/clear coat paint has it's advantages, such as the quicker drying times, and ease of touch-ups, but the main advantage is protection from the elements.
It seems that certain paint colors will make it appear that the clear coat is damaged sooner than other colors. For instance, silvers, and light metallics don't seem to stand up as well as solid, or darker colors. The clear coat will fade/peel, and you'll see the dull, original paint underneath, just as you describe.
Without the clear coat over the base color, the paint would just be....color. No shine at all, and it wouldn't survive very long. The clear coat is what brings out the color, and "shine/luster" of the paint.
The older paints, such as enamels, and lacquers, all have their good points and bad points. Enamels are tough, and easy to keep up, but take forever to dry, as they depend on air dry. Lacquers dry quickly because they dry by solvent evaporation, so it's easier to "fix" boo-boos in the paint booth almost as soon as you find them, but lacquers have little durability. You can mix clear in with lacquer paint, and get the best of both worlds, but...it's pretty much illegal to spray lacquers without a proper spray booth with specific filters...
Bottom line is, ANY base/clear paint will peel eventually, unless the vehicle stays
completely out of the sun and weather. Doesn't matter how well you maintain it, wash, wax, etc...if it gets any sun, the race is on!
______________
Joel Adams
C3VR Lifetime Member #56
My Link
(click for Texas-sized view!) NCRS
"Money can't buy happiness -- but somehow it's more comforting to cry in a CORVETTE than in a Kia"