I could very well be wrong here, but I don’t think running Desktop Linux in a VM is a very large market, and I would just use Docker to run CLI tools. There aren’t really any Killer X Windows Apps that won’t run natively on macOS?
I suspect they just don't want to publicly commit to Windows compatibility due to licensing issues.
Not really. It is a long way behind Rosetta.
(Partially because Apple only built the M1 to be optimised for running Mac apps in emulation, partially because Apple had spent five years deprecating older software very aggressively so nobody expected those things to work, partially because it's genuinely hard, and partially because it's not very good.)
(Source: I recently left VMware)
What the Insider ARM builds did give you that hasn't been in a release version (until tomorrow) was x86-64 emulation support and a few other minor ARM improvements and an easy way to source a compiled ISO directly from Microsoft.
As far as activating a standard Windows 10 license will activate Windows 10/11 for ARM even if the EULA says it won't and, regardless, switching to Insider builds doesn't sidestep licensing as you need to be licensed to join a PC to the program and the ISO installer has the same licensing and EULA requirements as a normal installer ISO.
Also, VMware is ready to add ARM64 Windows support if Microsoft creates a legitimate way to license it.
ps. currently 2 out of 459 processes on my desktop are running in x86 emulation; sourcetree and some speech synthesis thing.
Granted, I never got to try M1s, but this is plenty faster than my the Macbook Pro "16 for anything, and I hardly ever hear the fan. Battery life is still something that Apple has an upper hand on, but other than that, x86 seems to still be doing well.
99% running Linux, mostly a VM on which I run copies of most of my employer's non-infrastructure software for development and testing.
0.9% running Windows.
0.1% running MacOS. Generally this is only when I've found some bug and want to reproduce it on a clean system to make sure it is not just due to something I misconfigured before reporting it.
Is Debian ARM Linux going to work on an M1 under VMware Fusion? If so, maybe I'd still find VMware Fusion useful on an M1 (we use Debian at work, and I'm fine using Debian for my personal VMs that need Linux).
The value of virtual machines is to be able to virtualise a specific platform! That Win7 machine has software that needs to keep running. There is no Win10 porting or equivalent.