Glulx is a simple solution to a fairly trivial problem. We want a virtual machine which the Inform compiler can compile to, without the increasingly annoying restrictions of the Z-machine.
Glulx does this, without much fuss. All arithmetic is 32-bit (although there are opcodes to handle 8-bit and 16-bit memory access.) Input and output are handled through the Glk API (which chops out half the Z-machine opcodes, and most of the complexity of a Z-code interpreter.) Some care has been taken to make the bytecode small, but simplicity and elbow room are considered more important -- bytecode is not a majority of the bulk in current Inform games.
We're buried in IF VMs already, not to mention general VMs like Java, not to mention other interpreters or bytecode systems like Perl. Do we need another one?
Well, maybe not, but Glulx is simple enough that it was easier to design and implement it than to use something else. Really.
The Inform compiler already does most of the work of translating a high-level language to bytecode. It has long since outgrown many of the IF-specific features of the Z-machine (such as the object structure.) So it makes sense to remove those features, leaving a generic VM. Furthermore, there are enough other constraints (Inform's assumption of a flat memory model, the desire to have a lightweight VM suitable for PDAs) that no existing system is really ideal. So it seems worthwhile to design a new one.
Indeed, most of the effort that has gone into this system has been modifying Inform. Glulx itself is nearly an afterthought.
Glulx grew out of the desire to extend Inform. However, it may well be suitable as a VM for other IF systems.
Or maybe not. Since Glulx is so lightweight, a compiler has to be fairly complex to compile to it. Many IF systems take the approach of a simple compiler, and a complex, high-level, IF-specific interpreter. Glulx is not suitable for this.
However, if a system wants to use a simple runtime format with 32-bit data, Glulx may be a good choice.
[Note that this is entirely separate from question of the I/O layer. Glulx uses the Glk I/O API, for the sake of simplicity and portability. Any IF system can do the same. One can use Glk I/O without using the Glulx game-file format. On the obverse, one could also extend the Glulx VM to use a different I/O system instead of Glk.]
Graham Nelson gets pretty much all of it. Without Inform, there would be no reason for any of this. The entirety of Glulx is fallout from my attempt to deconstruct Inform and rebuild its code generator in my own image, with Graham's support.