I actually think it will suit Apple in the long run if Windows runs in a VM only with no viability to play games.
Virtual Machines and games aren't necessarily mutually exclusive. There is 3-5 cloud gaming platforms spinning up and/or deployed now. (Google , Amazon , Microsoft , etc ) . They are all running on virtual machine foundations.
The notion that they don't work at all when there are thousands of folks using them doesn't hold much water.
Are the most extreme, hard core gamers going that way? No. But was Apple every going to get the particular subgroup anyway? No. Apple only has to skip off some folks to largely blunt any losses in number of Mac buyers. It is already a relatively very small subset of Mac users and if make it incrementally smaller the approximation creeps toward 0% of the market. (which doesn't matter much. )
There are two missing major ingredients. One is virtualization support in the GPUs. AMD and Nvidia GPU are incrementally getting that. (newer , higher end ones do. ). And need OS support for that driver stack. (Apple is in process of doing a major driver overhaul so that may be in forward motion also. GPU driver disruption may be last on kernel reformation transition, but something is coming. ) . If Apple's Hypervisor foundation can allocate a 'slice' of a GPU and present that to Vmware/Fusion to use instead of their "emulated GPUs" then that will be as big of a leap as when Intel/AMD started adding hardware virtualization to their CPUs and radically change the size and scope of the VM making business. But Apple has to do substantive work there. However, if Apple is going to "bet the farm" on virualiztaion they should be investing substantive effort in that area ( may take a couple of years to fully get going. ).
Apple went back to license more tech from Imagination Tech. Lots of rumors swirled around going back for ray tracing. However, Imagination Tech also has virtualization support IP also. The virtualization doesn't have the gamer tech porn press sizzle to it, but Apple is lagging behind all the other major implementors there.
Some 32-bit apps might be an issue but chances are Parallels and VMWare can put a layer in to cover that which will be perfectly adequate for low-overhead apps.
While not impossible, it is doubtful those two will get in the emulation business. Their products have drifted way too deep into being dependent upon hardware virtualization support to work well and fast. They never jumped on trying to take market share away from SheepShaver.
If Apple's SoCs don't have aarch32 support then Windows WOW will probably use some relatively bad performance emulators to tap dance around the problem. At one point WOW was running on Itanium
https://docs.microsoft.com/en-us/windows/win32/winprog64/wow64-implementation-details
If a substantive number of other ARM implementors are going to dump aarch32 also ( e.g., folks doing Neoverse N1 , V1 which Microsoft will probably pick up for use in Azure) then they'll probably put some kind of 'band-aid' in WOW.
Not being able to edit media in Windows VMs on Mac probably not a hug issue
Again if Apple's future hypervisor can present a virtualized hardware GPU slice to the app in the VM that probably would work reasonably fine for many workloads.
given how spectacular the A1X chips are at handling video streams. (I run OBS on my 16" MBP at less than HD and the fans ramp up.)
Not being able to Boot Camp games will push devs to port them to run natively on Metal.
Seems to be implicit assumption there that Mac market share is going to ramp dramatically up. That seems doubtful. The Mac's high profits and relatively very low "antitrust " exposure is a combination Apple probably doesn't want to mess up. If the software vendor was relying on customers to use Windows in a VM image then they really were not going Mac support in the first place. If they thought the market was too small for the effort before it will just be worse now.
Apple isn't going to 'miss' them either because the vendor wasn't trying to engage before anyway. Taking Macs into
being solidly and more explicitly even better Macs is
not a Window/Linux developer recruitment campaign at all. Not even close. It is about building deeper synergies with the iOS/macOS developer community Apple' has already got and making that developer ecosystem healthier (and probably grow larger ).
Apple's hypervisor doing hardware virtualized GPU slices would help macOS images running in VM images also. (at least for recent macOS images. Running quite old and/or desupported macOS images probaby want a lowest common denomiator virtual GPU. Which VMWare and Parallels will probably keep around as a "backup" and for VM images that don't know anything about Apple's GPU and/or semi-custom 3rd party GPUs. )