Because in many countries, including US, it's illegal to leverage one product to ensure unfair market advantage for your other products, and this is very close to that...
Intel spent money to prevent their competitor from leveraging speedups from their compiler. It would have been less work for them to simply use feature detection on AMD chips, since Intel already has to implement feature detection for their own chips.
CentaurTechnologies ran benchmarks against ICC with the CPUID set to the default and then with it set to the name of an Intel chip with equivalent CPU flags.
Intel's response was roughly "We don't trust CPU flags, so we have kernels for each specific Intel chip, and a generic kernel for non-Intel chips"
No, not at all.
They want to run the Intel-optimized version. But instead it checks CPUID and runs a deoptimized version.