I think they wanted it to be ready, in very tight timescales, and somewhat lowish cost to produce, so the 8088 (with 8 bit externals, rather than 16 bit), made sense to them.
I think they only expected to sell a relatively small (to IBM) number of these "micro computers".
(Speculation and/or slight recollection on my part in this sentence) They may have been worried about losing sales/profit on their other expensive computers (such as Mainframes), if the IBM PC was TOO good.
If I had a time machine, I would try and talk them into using the Motorola 68000 and NOT using Bill Gates Microsoft. Instead go for D.E.C.'s new OS. Which I have heard rumors that Microsoft purchased the original DOS (early pre release version), which was itself an unauthorized copy (rewritten though, to avoid copyright issues or something) of what D.E.C. was about to release at some point (maybe).