Earlier quoted context omitted.
The M1 supports virtualization. The comment in question was talking about the older DTK CPU. A full VM with x86 emulation is not supported though, and from the sounds of it will never be.
Never seems like a long time. Why would it be impossible to implement x86 emulation with virtualization?
Apple would need to implement all the supervisor mode parts of x86, which massively increases complexity. It's a notably different product.
And it would even be virtualiztion, it's not exposing the real host hardware. No real x86 cpu exists to be exposed. It would just be an emulator pretending to be virtualiztion.