The Group Decode ROM: The 8086 processor's first step of instruction decoding
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Wouldn't that be bit 0?
There's a whole lot of documentation on decoding instructions for the z80 which makes these octal relationships clear.
One good site is http://z80.info/, for example.
(I started coding on the Z80, and nowadays tinker with a single-board machine running CP/M on one.)
Compared to the 6809, the 6502 or the 68000, the biggest reminiscence of the Z80 is the difference between AX/CX/DX/BX having 8-bit parts and SI/DI/SP/BP not having them. Though the low/high parts of IX and IY were accessible on the Z80 via undocumented opcodes (maybe even SP? I don't remember).
Digging up some stack history: https://en.wikichip.org/wiki/intel/mcs-4/4004 4004 - 4-level stack using PCx registers, with JMS/BBL to transition to/from subroutine, causing return address pushes/pops (deepest ones lost); 4040 – 8-level stack using PCx registers; 8008 – 8-level stack using AS call levels; 8080 – stack pointer register (SP) ...
I'm not sure how much simpler it could be? The propagation delays are intrinsic to the process.
Even 32-bit ARM isn't particularly easy to decode, and there are plenty of special cases there as well. 64-bit ARM is even more complex, like they tried to cram as many operations as they could in 32 bits of instruction.
Maybe MIPS is simpler to decode, but I remember seeing lots of odd gaps in the opcode map, and it's not really an example of high performance either.