SeasonLee,
The standard acknowlesges that composite profile can apply to a single feature which is not any kind of a pattern. That's why instead of P(attern)LTZF and FRTZF the description in the relevant section involves "profile-locating tolerance zone" and the "profile
feature tolerance zone" in the context of single features (look them up in your copy of Y14.5).
sendithard,
Another way to look at the problem you are describing is that the upper segment creates a tolerance band between 2 coaxial cylinders, one of Dia 20, the other Dia 20.2, fixed relative to the DRF.
The lower segment creates a band between Dia 20 and Dia 20.1, normal to the primary datum plane and floating, to refine only size, form and orientation. However once it starts to float trying to approve an actual feature, it becomes partially unusable on the opposite side from the float direction, as part of it gets out of the first segment's limits. So yes, you will have a very limited float. But this scheme is still less restrictive than having just the 2nd segment's value relative to A,B,C.