The "nor is the hardware a PDP 11". Byte access was the main new feature of the PDP 11 that C adopted. Are you saying being able to access individual bytes is not relevant on modern hardware?
Anyway, I do not see how this affects the design of C in a way that makes no sense anymore today (except that one could require CHAR_BIT to be eight, but there are still DSPs where this is not the case). I think people repeat the "the C design reflects the out-dated PDP-11 hardware" meme because it sounds smart while in reality it is just nonsense.