AMD can potentially "dual source" C cores from dies that have regular cores. A Phoenix2 product like the Ryzen 7540U could be made using the regular Phoenix die by disabling two cores, limiting the clock speeds of four cores, and disabling half the L3.
L3 cache is probably only loosely related to the C core. Is there anything stopping AMD from designing a custom die that has C cores (which are denser even without taking into account L3) but the usual amount of cache?
It would be completely pointless to try to turn regular cores into C cores because the only reason to use C cores is the increased density and efficiency within the window that opens up due to this. Mobile chips already have half the cache of the desktop ones so you'd basically be making a worse regular core with none of the benefits.
For a handheld device 6 or 8 C cores pared with whatever size GPU makes sense would probably be the best way to go about it. The Steam Deck has thoroughly proven higher powered CPU cores just take away from the GPU with no benefit at lower power levels. I don't think the Strix Halo, even in its smallest form, is likely to make sense from a performance/efficiency perspective.
I think the biggest problem facing handhelds is how to increase the graphics performance without blowing too much of the power budget. It seems like 15W is the best power target for a handheld, but adding memory channels (at least without on package memory) might push up power consumption too much. Potentially additional cache for the GPU might make sense, but I'm not sure how much without an increase in memory bandwidth due to how far behind discrete cards dual channel is.
Of course at the end of the day the real problem is one of volume and is anyone really going to make a fully custom chip just for this market (especially one with leading edge technology). The most recent Z2 Extreme rumors cite 3x Zen 5 and 5x Zen 5c with 16 CUs which could potentially just be a binned 370. It probably makes a lot more sense than the 4+8 configuration from the 370 for low powered operation.