The Colorado was the long-awaited replacement for the Chevy S-10. The S-10 sold well over two decades, but the midsize pickup truck segment was changing. Toyota and Nissan were both viable competitors at the time. Colorado was a better truck than the S-10 in just about every way, but mistakes were made with the design of the truck (via Hot Cars).
The five-cylinder Colorado was notorious for a head gasket defect. GM issued recalls for that problem, but it was never adequately addressed. A used Colorado was a risky proposition for a lot of consumers. The truck looked good but that was only skin deep. There was a V8 variation of Colorado, but it was rare and only produced for a few years.