If you're building your own embedded hardware then you determine what your needs actually are e.g. do you need double precision? half precision? vector?. Then you choose a chip implementing that. Then you copy the ISA string from your chip's documentation to the `-march=` argument for GCC/Clang and be happy.

It's not hard and you don't have to think about it unless you very specifically want to.

It's the same for other ISAs.

> What Iʼm slightly confused for is that all these extensions, useful for a minor part of applications, arenʼt moved to longer instructions (6-byte).

Because these instructions don't need it. There will be future >4-byte instructions, for things thay can't resonably be done in 4-bytes, e.g. much larger immediates.