> The market can sort it out for themselves
Because nobody will write software for 300 unique hardware variations of a platform that have inconsistent capabilities. Consistency is one of the reasons why x86-64 with extensions like like SSE, AVX2 etc is popular.
I believe the market will standardize on certain extensions for specific solutions. No one is going to make a mobile phone with only RV32I, for example.
> Because nobody will write software for 300 unique hardware variations
Who said they have to? One can select a RISC-V configuration for a baseline for a particular purpose. Desktop? Choose the one that's most powerful.
ARM is more popular than x86 and is less consistent than it.
Noone uses an 8051 because it's elegant. Billions are still still sold every year because no matter if you learned it in the 70s or last week and no matter who made it, the basics are exactly alike. Software matters; ISAs don't.