YESSSS.
I've been pointing this out for years and years.
By the point that you're looking at the same propagation delay as a common 64 bit adder you're decoding 64 chunks of 16 bits per cycle. That's 128 bytes, or a 32-64 instructions wide decoder.
That is so much wider than anyone is making or contemplating — or that even makes sense given the size of basic blocks — that it's just a non-issue.
So you either need (almost) double the number of full decoders, or a length decode and a bunch of shifters to get each decoder the right input bits (which get larger the wider the front end is. The 8th instruction can be at one of 7 possible offsets)
I suspect a design with a full decoder every 16-bits might actually win on everything but gate count, mostly because it can deal with variable length instructions and variable number of μops per instruction in the same step. A decoder that doesn't output a μop because it was clobbered by a previous instruction, can be handled the same was as a decoder that didn't output a μop because of μop fusion.
Actually, that approach might actually eliminate the need for the extra pipeline stage (just at the cost of gates).
It's certainly not a deal breaker. But it's a valid criticism of the ISA.
And for better than aarch64 density, it seems to make a lot of sense.
I'm not even sure you have a point with regards to it being a valid criticism. Doubling the silicon area for instruction decoding probably costs nothing, because if you have a simple decompression stage, the maximum number of decoders is already doubled in the first place, because you're hypothetically encoding twice as many instructions to begin with. If you can double the decoders in the decompression stage, you can probably get rid of a separate decoding stage altogether and thereby reduce the cost to literally nothing.
Look, it might not be obvious but in university I once had to design an ASIP and then do the floor plan with Cadence and the area of the SRAM dwarfed everything to the point where my ASIP was a tiny vertical column in-between two SRAM chips. I personally was shocked by the fact that I struggled to even find my ASIP on the floor plan, because it was maybe ten standard cells wide in-between the SRAM blocks. Like, ridiculously tiny to the point where it is hard for me to even care about the area the ASIP took up.