Concerning Windows on Arm licensing, to be honest while it's not official, Parallels has rencently found a way to run proper Windows on Arm on Apple Silicon, not the insider version, and it can be activated with no problem via any licensing. So licensing is no longer an issue with Parallels.There's already UTM, which uses QEMU, which already emulates x86 (and other architectures as well) on the M1. And yes, it's slow, but not as slow as you would think, it would work except that it's not all that stable and it really doesn't have a big money back behind it to put enough people on it to make it work well. I'm hopeful for the future, but it really doesn't do well enough for me to rely on it.
Windows on Arm runs MUCH better, though even it isn't flawless. The problem with it is licensing, and that'll take Microsoft to change. I suspect it's the exclusivity contract they had/have with Qualcomm to make Arm processors for them that's getting in the way for now. Who knows about the future. Note that running an x86 emulator and Windows x86 on top of that wouldn't have the same EULA that WoA has.
Nobody knows the details of the Qualcomm exclusivity and if the contract will be extended or not. But regardless I don't see much interest from Microsoft to have WoA running in a devices without the OEM paying for Windows (and Apple is never going to pay). I see more interesting options in letting Windows on Arm run on devices like Samsung Android tablets (instead of Dex), especially if Samsung can make use of the more powerful Nuvia chips that Qualcomm is preparing for WoA.