An Arduino has none of the missing parts you mention (except interrupts), yet it's quite a useful device even in non-toy applications.
The Atmel CPU is more constrained but still has hardware breakpoints, IO instructions, watchdog timers and interrupt support. It also has far more complex addressing modes (more CISC-y) to save on instruction counts and a variable length instruction set encoding where memory space to store code is a first order concern.
I’m also sure there is a memory controller to control the SRAM.
So, even if you were to build a simple micro controller, you’d need a lot more features and most likely higher performance (and power efficiency) than you would get from a trivial 2-stage pipeline. Not to mention there are no instruction or data caches in this RISC-V machine.