The hardware on offer currently is just as expensive as the x86 alternatives, has worse performance (unlike M1, which has excellent performance), and only offers marginal battery life benefits.
Microsoft is also not particularly committed to ARM or willing to competently execute that transition. For years they were trying to hobble their offerings (Windows RT, then later Windows 10S). In their first introduction of ARM, they didn't have optimized compilers, so performance was even worse than it should have been (Surface RT was a real disappointment).
Microsoft has also been jerking its development community around for the last 15 years in ways that make targeting Windows unpleasant. Half of Microsoft is trying to tell everyone that UWP is the future, the other half won't even bother supporting it. You might be surprised which half is bigger. The Windows group has spent a lot of time at war with the developer tools group, and it shows.
Basically it all sums up to: Apple is a serious trustworthy partner, Microsoft is not. Apple's ARM offering is actually better in several ways than the x86 alternative; Microsoft's ARM offerings offer noticeably less value. M1 is genuinely exciting, Windows on ARM is not.
That’s Windows :D
The idea before that we'd immediately switch over seemed mad, but based on what I'm seeing there is a good chance that's what's going to happen.
Really, I'm not surprised that people are holding off until they show some sign that they mean it this time.
Correct.
Rosetta is a transitional technology to allow x86 apps to run on M-series Macs while their developers work on Universal versions that will run natively on M-series Macs in addition to Intel ones.
Apple has been clear that they expect the transition to M series chips to take about 2 years… a couple of years after that, they'll stop including Rosetta with macOS and will require developers to ship native apps.
The removal of Rosetta 1 is widely believed to have been rushed because it depended upon licensed technology. Since Rosetta 2 was an in-house design, I wouldn't be surprised at all if Apple kept it around considerably longer.