I'd personally be more concerned about stability and drop-out issues. Apple sells Rosetta as an "ahead-of-time" translator, but that is necessarily best effort (because true transpiling is not a solvable problem, e.g. self-modifying code). Thus, there is always the possibility that the JIT gets invoked in the middle of the audio processing thread, and that won't end well for real-time guarantees. There are also programs that just don't work under Rosetta properly (for unclear reasons).
Also, audio companies sometimes like to use "fun" DRM/copy protection systems.
Besides, audio apps themselves doing JIT would not be unheard of. For example, that'd be a very efficient way of implementing a modular synth. Those apps could JIT in a realtime-safe way; Rosetta can't (it doesn't have enough info).
You responded with some technically-detailed speculation, which, fair enough. I guess we'll have to wait and see.
Switching to x86 emulation for compatibility, will be a performance hit against running native ARM
The arguments in the thread about "but a lot of software right now runs in emulation" and "who knows when the software companies will get around to transitioning" aren't wrong, per se, but they're also arguments that long-time Apple users have heard variants of in the PowerPC to x86 transition. And in the (original) Mac OS to OS X transition. And in the 68K to PowerPC transition. It turns out that when transitioning your software to the new platform doubles your performance and/or is necessary to keep selling your product, you have a fairly strong motivation to do the work.
Let's say you have a DAW with ARM and x86 binaries but a VST/AU/RTAS that's x86 only. You need to run the DAW as x86 under Rosetta, which will result in reduced performance versus a native binary, assuming the native processor was capable of equal performance.
Given how zippy the M1 is, that performance penalty may well still put you ahead of where your x86 perf was, but still slower than native.