The Type class is used in a lot more places, not just System.Reflection. A quick search with Reflector reveals hundreds of them. It is crucial in System.Configuration, System.Data, System.Drawing, System.Linq, System.Windows.Forms, etc. The way the Type instance is actually used in these classes isn't visible. It is likely that System.Reflection is used but that's an implementation detail that in no way affects the program.
Given that creating the Type instance that these classes need is trivial with the typeof operator and object.GetType and that you never have to use System.Reflection unless you actually write reflection code, Type certainly deserves an easily accessible location in the System namespace.