I thought about that, but I imagine they would either not do much to the CPU part beyond shrinking it or optimize the core more toward parallel compute rather than something that would be useful as a cheap CPU.
I believe they would continue to do so.
They said future cores would use Atom to reduce single thread performance deficit with Xeon chips. The new Atom cores are 3x+ performance of the P54's in the Knights Corner one.
Considering the area, Silvermont is a huge improvement even over previous Atom, nevermind P54C. They are nearly the same size. That's one part Core cannot think of even doing.
Without single threaded performance it would literally have been impossible to achieve what they have done with Knights Landing. That is, offer competitive performance without corner-case optimizations out of the box practically. SpecFP_Rate performance equivalence to a 2P Xeon setup is simply excellent. You get to run everything you have at a decent rate, and get huge future speedups when you optimize the applications you want. AVX-512 compatibility with SKL Xeon means SKL optimizations benefit Xeon Phi. The same sentiment is mirrored at benchmarks(though few) out there.
They realized that being able to run current code at decent rate with future expansion capabilities are what both Itanium, and Atom on Android lacked for success. They are both gone.
Knights Hill(successor) guesses: Goldmont cores are likely 3-issue cores. I doubt they'll expand core count much, because scaling starts to fall off on many general purpose cores(its also I believe no coincidence their research chip ranged from 60-80 cores). I am guessing the possibility of having 3x 512-bit FP cores, for 50% throughput increase per core. Improved design may also indicate higher clocks. 50% FP increase per core x 20% higher clock x Core increase to 80 from 72 = 2x performance and performance/watt.