Earlier quoted context omitted.
I feel like 95% of the use case for UI’d virtualization is running Windows, and being unable to do so I suspect they will lose most of their business? I could very well be wrong here, but I don’t think running Desktop Linux in a VM is a very large market, and I would just use Docker to run CLI tools. There aren’t really any Killer X Windows Apps that won’t run natively on macOS?
Windows is available for ARM, and it supports emulation of x86 apps just like Rosetta. I am using it right now on Parallels and it works fine for me. I suspect they just don't want to publicly commit to Windows compatibility due to licensing issues.
Not really. It is a long way behind Rosetta.
(Partially because Apple only built the M1 to be optimised for running Mac apps in emulation, partially because Apple had spent five years deprecating older software very aggressively so nobody expected those things to work, partially because it's genuinely hard, and partially because it's not very good.)