Say you are transitioning from A to B, and then in the middle of that transition, you retarget to C. If the interpolated values can only be represented with mix(), then we'd have mix(mix(A; B; x%); C; y%), which isn't valid.
Can we drop the weird "must be the sole value" and actually give mix() a type?
Note: See w3c/css-houdini-drafts#425 for a real example of something that can be transitioned, but not represented.