Yes but then what?
Now it just so happens that Thread5 is my most important thread of them all and now its chugging away at 20% ..
Well, it would be more like Thread 1 - 60% of dedicated, Thread 5 - 60% of dedicated.
In reality, modern OS schedulers periodically shuffle threads between cores, so that all threads should end up with roughly balanced time on shared or dedicated cores.
Further, the latest OSs do recognise which logical cores relate to which physical core, which cache (some CPUs share caches between cores), which RAM (e.g. in multi-socket CPU systems) and can optimize the scheduling of threads, so that a thread which primarily uses RAM on CPU socket B, spends most of its time running on CPU socket B.
A similar technique can be used to bias threads towards unused physical cores (for performance) or bias threads towards partially loaded physical cores (to save power - Microsoft call this "core parking"; if all the running threads can be placed onto 1 physical core without lagging, then all the other cores can be shutdown completely saving power until they are required again).