Well that's only sunk cost if they assumed from the start that they were going to change the design to RISC-V AND drop the C extension. In that case, it was a rather risky plan from the start - assuming they can shift the industry like that. I'm guessing RISC-V was a change of direction for them and this would make things easier short term.
The time to 'get it right' has already passed IMO. If a hard ISA compatibility break happens at this stage, who is going to trust that it won't happen again?
The question is really about how far do they want to go beyond just disallowing page-crossing / cacheline-crossing instructions.
Personally, I always thought the C extension would have been much easier to implement if it had certain rules about it. Imagine looking at a random location in memory, how can you tell where instructions begin and end? You can't.
So far, nearly all RISC-V is in the embedded space where everything is compiled from scratch, and a change to the ISA wouldn't have a huge impact.
Far more important to get it right for RISC-V phones/laptops/servers, where code will be distributed in binary form and expected to maintain forward and back CPU compatibility for 10+years.