Earlier quoted context omitted.
The problem with Intel doing this is that, for marketing reasons, they tend to enable different sets of instructions on different cores and an OS would have a really hard time scheduling threads when some the Skylake cores can execute AVX instructions but the Goldmont cores can't. Normally the scheduler wants to assume that it can just move a thread from one core to another but if the thread started off on the Skylak…
Couldn't you engineer the little core to take the fat instruction it can't process and instead do many small instructions to get the same end result? I am specifically thinking of AVX here, and it seems like it would work.. but perhaps there are other instructions that would not be so easy to unroll.
But in general you could certainly design an Atom-ish core that has the full range of Intel instructions. Or just add AVX (they've already done this with Phi) and take all the other extra instructions out of the SKylake.