It's not just the mux, it's the control signals for the mux. If your first instruction in your 16-byte window is three bytes long, you can't realistically mux bytes 3-15 to the second decoder input, because you don't know that it needs to start decoding at byte 3 until /after/ the first instruction has decoded; so your gate delays would be the sum of the five decoders, plus muxing etc, and we're trying to do this at a single cycle.
The alternative is to have 16 decoders, each decoding what an instruction /would/ be if it started at a given byte. These all complete in parallel, but many of them might produce garbage. So we need to find the first five of these that have non-garbage outputs, and /then/ mux those sixteen possible outputs down to five channels. This is doable (and done), but it's a lot more hardware in both decoders and muxing than you might think at first.
Basically: To decode five instructions per cycle from a fixed-instruction-width stream takes five decoders. To decode up to five instructions per cycle from a variable-instruction-width stream takes number-of-possible-starts decoders and a mess of muxing. There really is a cost here.
The Thumb ISA is left as an exercise for the reader.