There's a huge difference between 2/4 byte variable density and 1-15 byte variable density. And as I've said in other places, my experiments showed that it ended up being kind of across the board less than half a pipeline stage to handle C instructions, kind of orthogonally to decode width.
It is a different front end design, so that's why Qualcomm didn't want to reengineer their aarch64 core more than they had to, but the rest of the riscv community was right to not embrace it.
Not to mention that a lot of the aarch64 derived pieces in the proposed qualcomm extension are almost certainly patent encumbered. Qualcomm can absolutely handle just about any patent fight, but other risc-v companies can't.
I agree that 16-bit/32-bit variable length would struggle to beat x86. But I suspect it could have gotten close, simply because x86 wastes a huge amount of its advantage on legacy cruft.
The important point is that there is no reason why a 16-bit/32-bit encoding shouldn't have smashed Aarch64's 32-bit only code density.
My secondary point, is that why should RISC-V limit itself to just 16-bit/32-bit? It has the encoding space set aside for 6 bytes, 8 bytes, 10 bytes and all the way up to 24 bytes (which is overkill). If it's already paying the variable length tax, it should be making better use of it. IMO, a 2, 4, 6, 8, 10... byte scheme should be able to massively improve on x86's code density.