SIMD will make narrow types valuable forever. If you can do a 256bit add, you can do eight 32bit integer adds in parallel on the same hardware (by not propagating carry across element boundaries). Or you can do thirty-two 8bit adds.
Hardware multiplier circuits are a lot more expensive to make wider, so it's not a good assumption to assume that a 256b X 256b multiplier will be practical to build.
Even besides SIMD considerations, memory bandwidth / cache footprint is a huge deal.
So 4B float will continue to be excellent for being precise enough to be useful, but small enough to pack many elements into a big vector, or in cache.
Floating-point also allows a much wider range of numbers by using some of its bits as an exponent. With mantissa = 1.0, the range of IEEE binary64 double goes from 2-1022 to 21023, for "normal" numbers (53-bit mantissa precision over the whole range, only getting worse for denormals (gradual underflow)). Your proposal only handles numbers from about 2-127 (with 1 bit of precision) to 2127 (with 256b of precision).
Floating point has the same number of significant figures at any magnitude (until you get into denormals very close to zero), because the mantissa is fixed width. Normally this is a useful property, especially when multiplying or dividing. See Fixed Point Cholesky Algorithm Advantages for an example of why FP is good. (Subtracting two nearby numbers is a problem, though...)
Even though current SIMD instruction sets already have 256b vectors, the widest element width is 64b for add. AVX2's widest multiply is 32bit * 32bit => 64bit.
AVX512DQ has a 64b * 64b -> 64b (low half) vpmullq, which may show up in Skylake-E (Purley Xeon).
AVX512IFMA introduces a 52b * 52b + 64b => 64bit integer FMA. (VPMADD52LUQ low half and VPMADD52HUQ high half.) The 52 bits input precision is clearly so they can use the FP mantissa multiplier hardware, instead of requiring separate 64bit integer multipliers. (A full vector width of 64bit full-multipliers would be even more expensive than vpmullq. A compromise design like this even for 64bit integers should be a big hint that wide multipliers are expensive). Note that this isn't part of baseline AVX512F either, and may show up in Cannonlake, based on a Clang git commit.
Supporting arbitrary-precision adds/multiplies in SIMD (for crypto applications like RSA) is possible if the instruction set is designed for it (which Intel SSE/AVX isn't). Discussion on Agner Fog's recent proposal for a new ISA included an idea for SIMD add-with-carry.
For actually implementing 256b math on 32 or 64-bit hardware, see https://locklessinc.com/articles/256bit_arithmetic/ and https://gmplib.org/. It's really not that bad considering how rarely it's needed.
Another big downside to building hardware with very wide integer registers is that even if the upper bits are usually unused, out-of-order execution hardware needs to be able to handle the case where it is used. This means a much larger physical register file compared to an architecture with 64-bit registers (which is bad, because it needs to be very fast and physically close to other parts of the CPU, and have many read ports). e.g. Intel Haswell has 168-entry PRFs for integer and FP/SIMD.
The FP register file already has 256b registers, so I guess if you were going to do something like this, you'd do it with execution units that used the SIMD vector registers as inputs/outputs, not by widening the integer registers. But the FP/SIMD execution units aren't normally connected to the integer carry flag, so you might need a separate SIMD-carry register for 256b add.
Intel or AMD already could have implemented an instruction / execution unit for adding 128b or 256b integers in xmm or ymm registers, but they haven't. (The max SIMD element width even for addition is 64-bit. Only shuffles operate on the whole register as a unit, and then only with byte-granularity or wider.)
