Wouldn't the last case (void *) hurt embedded C development, or retrogaming with direct memory access and pointers?
Not really. You'd still be able to address memory as bytes. The problem with void * is that it strips all bounds information by its nature. Most of the time when you're passing a void * without an associated length (e.g. context pointers, objects that you pinky-swear are of a certain type), it indicates a failure in the language. That's the stuff I think needs to be eliminated.
They said "cut down", not "eliminate."