Lets look at your idea a bit.
First lets forget about speed, get something working and there are ways to speed it up.
You mentioned a pic.
You could write a program for the pic to pretend to be a ___ bit processor. As what went in the the ___ got bigger you may need to add some IC's to get the __ bit with. This program could pretend to be any processor you ever heard of but for the speed.
I do not want to call this microcode, but in some ways it act's like it.
You could do a lot of logic and to keep it simple, do steps working through a control program in control roms to control things. The PDP-11 's control roms were 160 bits wide if memory serves. The PDP-11's had an option that added more control roms to add floating point math if memory serves. The program in the control roms is normally called microcode.
You could have an option like the PDP-11/45 did to add some ram an additional to the control roms and end up with what they called a writable control store. A crazy capability when you think of it, Run a program on a computer and add special instructions to the existing instruction set, instructions that take advantage of the hardware to do something not possible before or faster.
I heard that in the later generation PDP's the rom's they could get were too slow, so they did a copy control roms the control ram step. I heard of a version of this that would be like your pic doing the initialization of the control ram.
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You could do a lot of logic and have logic dictate the steps instead of the control roms. Here if you goof you rework logic instead of updating some data in the control roms. Some micro's are built with this method.
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In the past I worked with what they called a bit-slice processor.
http://en.wikipedia.org/wiki/Bit_slicing
In simple terms, if you put 4 4-bit bit-slice processors together and you could have a 16 bit processor. I saw this once in a place you probably not expect, a printer.
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I heard that the dec vax ( a 32-bit CPU) was first a program on a PDP-11.
and I have seen in the bigger computers where they use a smaller computer to do the io. If you want to see this to the extreme, there was an article in popular science in the 1970;s I think. What that article did not say well could be,
"Take two of the worlds most powerful computers systems and use them to do the IO of the CRAY-1". Not quite right, but close. What the article did good on was the fact that the CRAY-1 was the little thing in the corner.
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if you want neat processor the NS320xx is one.
32 Bit address
8 bit cpu with ___ registers.
16 bit cpu with ___/2 registers.
32 bit cpu with ___/4 registers.
The difference in a PDP-11 instruction for 16 bit vs 8 bit was one bit, but still messy doing 8-bit to 16-bit steps
The NS320xx Instruction set made it real easy
add that it was designed with the idea that the CPU would be one or more chips.
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anyway, just use none or more and have fun.
C