This is really the core question. AMD must somehow have determined inside the company that the future is ARM for them. In other words they will abandon x86 on the long run.
So unless AMD plans to sell vanilla cores and save a truckload of R&D. Then its simply a losers path. While competiting with Intel in x86, its also their guardian against all the other ARM companies. While competiting in the ARM space its just a pure wild wild west game.
Short conclusion seems that AMD have shoot themselves in the foot...again.
I think they thought they were second only to Intel in the MPU realm, and beating their head against that rock wasn't giving them the profit opportunities they desired, so they figured competing against the ARM companies would be like shooting fish in a barrel for their design teams.
Now you fast forward 4 yrs, those ARM teams are quite flush with talent themselves (a surprising amount being ex-AMDers too) and the ARM chips AMD thought would be gravy to produce and sell are turning out to perhaps not be all that.
But, just like the case with Fusion and APU, you can't spend four years selling your BoD and shareholders on the vision of an ambidextrous AMD portfolio only to then come back and "can" the whole thing just because the ARM competition showed up and trumped you.
You can only "can" the effort if you have a much better (i.e. sellable) strategy and vision to pitch to the BoD and shareholders in the very same meeting/presentation wherein you are killing off the vision of the past many years.
AMD needs something to pivot into, they pivoted from a bad Phenom situation to "fusion is the future"...and then they pivoted from fusion to "ambidextrous computing, ARM & x86, plus semi-custom, and a kitchen sink as well!" under Rory, now that Lisa is at the helm she will determine what is the catalyst for the next pivot point that is sellable to AMD's ever patient shareholders and ever blind BoD.