Maybe this is just the best they could do in that time? It's not super likely that they ever expected having to clock up these high core count cpus. It takes time to go back to the drawing board when you can't expect die shrinks to help solve your various scaling problems.
No doubt we have needed this for a long time. I remember when the original Athlon (good old Slot A) came out and how over the next number of years it was exciting seeing Intel and AMD go back and forth with the performance crown. Obviously I am poking a bit of fun at Intel here. Anyone that is...
Can't fault them for wanting to make some money off the server market. They obviously don't want Threadripper to cannibalize the more profitable Epyc sales.
The lack of solder seems like a cash grab. They felt it was good enough and it would save them a few bucks. I don't think they expected major competition from AMD when that decision was made.
This likely isn't like Microsoft buying other brands and killing it. At least I this purchase kind of falls in line with things Microsoft should be involved with. At least it's not like the Nokia purchase that was way too late in the game and led to nothing.
I have to imagine it did well enough in testing that AMD felt didn't impact performance too much. At least it doesn't need exotic cooling to seem impressive. :)