If Microsoft and/or Qualcomm released x86-to-ARM translation layer that is as good as Rosetta 2. Things would change overnight, just like how Apple Silicon transition was seamless and did not break most of legacy x86 apps (infact they ran faster).
I don't think that's right. Part of the problem with Windowsland is that there are many players whose incentives and timelines are not aligned, so transitions are very gradual and messy.
Look at what happened with Windows 8 - Microsoft intended every Windows device to have a touch-screen and they could leverage their PC dominance and eat the iPad and other tablets. But Lenovo, Dell, HP, etc largely did not put touch screens on most of the Windows 8 machines they made. Didn't want to spend the extra money on something they didn't think customers wanted to pay for. Net result - the Windows touch platform flopped. And while Microsoft tried to backtrack with Windows 10, the Windows 8 debacle has had lasting impacts on the platform more broadly, all negative.
The way the PC industry innovates is that a supplier, e.g. Intel, comes up with something that is
better at the current way of doing things and that has extra modes that are not yet used. Then, once those extra modes reach a certain installed base, the software starts taking advantage of them. Look at, say, 32-bit protected mode - most 386es and a good chunk of 486s went to the e-waste pile having never run a 32-bit protected mode operating system, but by 1995, there were enough 32-bit-capable machines out there for Windows 95 to be a smashing success. And same thing with x64 - the original x64-capable desktops running Windows XP or even Vista went to the e-waste pile having never run a 64-bit operating system, but by the late 2000s, there was enough of an installed base of x64 systems for driver makers, etc to start supporting it seriously.
Qualcomm could make the world's greatest ARM chips and Microsoft have great drivers for them tomorrow - if you are Lenovo or HP, why would you gamble on that, when any problems means YOU get to eat the returned hardware and no one is waltzing into Worst Buy demanding the new Qualcomm chip in their $700 laptop? It's safer to just keep buying the Intel or AMD chips.
The biggest reason for the conservatism in Windowsland is that Lenovo/Dell/HP/etc do not want to get hardware returned because some legacy port is missing or some new-fangled OS or something isn't compatible with somebody's older software/peripherals/etc. (Look, also, at one of the things that killed the Linux netbook in ~2006-8 - apparently return rates were much higher on Linux netbooks than on XP netbooks) The second reason is that Lenovo/Dell/HP/etc do not want to add anything to their lower-end systems (e.g. USB-C, dual-band wifi, etc) unless they are convinced they absolutely have to. If it costs $0.50/more per system, and they don't think the people waltzing into WB care about it enough to pay $50 more for a system that has it, Lenovo/Dell/HP don't throw it in. That is why $700 consumer Windows laptops are how they are.