Why did they do it? Well an 83MHz bus is ~20% faster than a 66MHz bus. The G3s were clocked at 250 and 292 because those were the closest they could get with the standard .5 multipliers (the 250 was probably actually rated at 250 while the 292 was rated for 300).
Why did they stop? It added complexity to the product lineup which introduced logistical problems, etc., so they shut it down. The 66MHz part was more plentiful and less expensive than the 83MHz part, so they chose 66MHz instead of moving it all to 83MHz.
Plenty of early beige G3s also use 83MHz Grackles, but they were never sold configured as such. I like to find these models and clock them up to their rated speed. One of my go-to bridge machines is a highly modified G3MT with a Rev. C ROM, an 83MHz bus, and a (slightly overclocked) 416MHz G4 (from a 400MHz Yikes! G4 that was upgraded).