The difference between x86 and ARM on the power/performance curve is almost purely due to design choices and trade offs. So why not create a new low-power x86 core instead of a new ARM core?
The only way this makes sense to me is for this to be a stepping stone into the mobile market. The mobile market is definitely stepping up the power/performance curve, and AMD's experience with GPUs may be a distinct advantage for them in the mobile market in the future.