The particular event that article references was part of a long term restructuring. Presently, there are many US, European, and Indian developers that still contribute to Workstation and Fusion. There's also significant overlap 'under the hood' with the ESXi code base.

As for VMware's platform being second rate - there's still not really a lot of serious competition in the on-prem world, especially if any kind of scale, extreme performance needs or operational complexity is required. Nitro certainly runs circles around it in some regards, but that's not really an option that's on the table for big on-prem shops.

That's an unnecessarily xenophobic way of saying what the article does, which is that VMWare has decided to shift their focus to server virtualization at the cost of desktop virtualization. They're a business, and if they're making more money from one product line than the other, it's their choice to abandon the one. Don't buy the product if you don't like that, sure, but there's no reason to disparage outsourcing as the problem here.

Xenophobia has nothing to do with it.

It’s just a matter of fact they fired/restructured/outsourced, whatever the hell you want to call it, so they could hire cheaper developers to simply maintain the product.

VMWare would almost certainly offer this capability if it wouldn’t require the outsourced team 2x, 3x, …, 10x the amount of time it would would have taken the team who originally built the software.

You're completely off the mark. Fusion doesn't support x86 workloads on top of ARM largely because the ARM fork of ESXi doesn't support x86 workloads on top of ARM (and AFAIK, there's no future plans to, either).

Fusion and Workstation inherit most of their underlying capabilities from ESXi. Barring a few functionality/usability flourishes unique to workstation/desktop use cases...if ESXi doesn't do it, Fusion and Workstation won't.