Yes, lol. Couldn't they even just literally build an ARM custom core and implement something similar to the TSO memory compatibility the M1 had(?) in order to better emulate X64 binaries?
...but Windows and Linux already have ARM-native versions with both x86-64 and x86-32 emulation(/translation?) (although I don't think the latter is such a big deal under Linux, since so much is already ARM native). Those are going to give better all-round performance since the core OS is native. From what people have said about running WoA on the M1, the emulation isn't bad. (...and I guess that, since both Apple and MS have done it, this also shows that Intel don't have any IP claim against people writing x86 translators).
It's not as if Apple's ability to emulate binaries in X64/X86 is any more privileged and yet they did a phenomenal job.
Apple have an easier job, since Rosetta II only has to be impressive for
modern Mac apps that are already Mac OS 11+ compatible, 64-bit only and written to use the modern MacOS frameworks - which, even under Rosetta, get a further boost from GPU and other hardware in the M1 custom-designed to accelerate those frameworks.
Last I looked, although Win16 was dead (but still twitching) it's going to be a long while before Win32 compatibility can be killed. (That would be roughly the equivalent of Apple having only just succeeding to phase out Classic, but needing to keep Carbon going for at least another 5 years). In
theory, since MS have been pushing the VM-based .Net framework for the last decade, binary compatibility should be a non-issue by now. In practice, PC users
do expect that 20 year-old code to run...
...and that need for an insane level of backward-compatibility is both x86's curse and its only reason for continued existence. If Intel decided to start making ARM, RISC-V or some other new ISA that wasn't 100% compatible
and super-fast with x86-64 and x86-32 then they'd be in direct competition with not just AMD, but Qualcomm, Samsung, Amazon and every other ARM licensee running Windows-on-ARM, Android or Linux (something that the x86 hasn't had to bother with since IBM anointed the 8086).
I don't think Intel's battle is against Apple and the M1 specifically - Apple ain't gonna be selling Apple Silicon SoCs to Dell, HP and Lenovo any time soon, and their "surprise! surprise!" attitude to roadmaps and breaking compatibility - they're kinda at the opposite extrme to Wintel - will always work against them in the enterprise sector. Intel are up against the very
idea that you can do serious personal or enterprise computing without an x86 chip - and the M1 is adding a lot of credibility to that. The real threat would be Lenovo, Dell , Microsoft et. al. deciding that they could have their own chips, too. Frankly, Intel have already lost that battle - the last 10 years or so have seen them not only completely lose the mobile market, which proceeded to eat a large chunk of the lower-end PC market, but the rise of web services that use a Linux/Unix server, running scripting languages, talking to a web browser, none of which are particularly fussed about what ISA they're running on, and will ultimately switch to whatever architecture shaves 10% off their electricity bill.
We're past peak x86, past peak Windows - but those two were
so huge that they will take years, if not decades to fade away. Intel still have a lot of easy money to make from x86 over that period - they need to think carefully and pragmatically about doing anything that would accelerate its demise. That's probably also why MS are being a bit lukewarm about really pushing Windows on ARM - anything without
perfect legacy compatibility might make customers start taking the alternatives more seriously.
NB: At one point, Intel
presumably had an ARM Architecture license - just like Apple - because they inherited the StrongARM chip from DEC. If that's not still current, I'm sure ARM would take their money (esp. now it isn't going to be NVIDIA) - so it's not as if they can't join the ARM party as soon as they've milked the fading x86 for all it is worth.