And early ARM is pretty crazy too. Since early ARM only addresses 26 bits, they decided that it's a good idea to use the high 6 bits for other purposes, and also the low 2 bits since everything is aligned to 4 bytes. Fortunately this is mended in later revisions, but if ARM was used in some popular computers where backward compatibility is important, I can't imagine what the mess it might be.
I think supporting a legacy 26-bit PC + CPSR mode would be much less of a headache than supporting real mode, virtual mode, 286 protected mode (although that one could have surely been dropped a long time ago), and x87.
But the ISA development would have probably gone in a pretty different direction too. Like a standard set of FP instructions much sooner, and probably SIMD too.