Yep apples rosetta compatibility layer is surprisingly fast.
But since Apple makes both the hardware and the OS they had the motivation to put work into it. They no doubt had to have a sizable team of very bright people working on it.
Yet for Microsoft there is not much incentive to develop a high performance compatibility layer. They don't benefit anything from making Intel and AMDs life easier. Once they started messing with ARM they instead pushed for .Net JIT since that's the tech they already had available, so it takes the minimum amount of effort from there side to make apps run on non x86 systems.
Windows ARM was a spectacular failure that cost the company billions.
Was? It's not dead. There is a version of Windows 11 for ARM. They're just waiting for the market to open.
MS has not been very successful on anything mobile, where ARM dominates. So unless there's a miracle there, they'll have to wait till ARM becomes more common on the desktop.
It may or may not happen. As I said earlier, Apple has at least shown everyone that ARM-based CPUs for desktop computing was a credible option. Will other vendors follow to make non-Apple, ARM-based CPUs able to compete with current x86 ones? I don't know yet. Some think (or hope?) that RISC-V will eventually take that segment rather than ARM.
Software-wise, that's of course another matter. What proportion of software vendors are ready to build/port their software to ARM CPUs? It's hard to tell.
Anything Java-based is probably not going to be a problem, but otherwise that is not unlikely to give headaches for many vendors.
That's just what you pay when you've been sticking to a single platform for several decades. Changing is hard.
But it eventually happens. Always.
Intel has always had troubles trying to get rid of the x86 ISA. So many would consider trying it again a mistake. Heck, here we're not even talking about Intel's new CPUs being a different ISA, but just getting rid of the 32-bit mode, and it already looks like a major hurdle. Yet, if they don't end up with something brand new, they will eventually die.
That's the conundrum of almost all large companies with an established business and standard. IBM has been in the same boat. And many others.
You can't really innovate, yet if you don't, you'll die. That's somehow what's called being a victim of your own success.
"The Innovator's Dilemma" talks about this in great lengths.