My M1 (standard) CPU is definitely faster than my Ryzen 7700x on some tasks, and it blows it away on perf/watt.
However, high-end workstations, compute-focused servers, and supercomputers, which use extremely expensive and power-hungry x86 chips, are a different segment, one to which ARM currently has no direct answer (and some might argue it shouldn't have one because such wasteful things shouldn't exist). This segment once had a number of competitive RISC players, like POWER and SPARC, so I don't think it's unobtainable for ARM.
There's at least 2 in the top 10, and the fugaku was the fastest in the world for a couple of years between 2020 and 2022.
Concerning RISC-V having caught up with x86 performance: dream on ... :-(
It allows for an architecture to deepen pipelines, add registers, add cache, and pull off tricks like SMT.
> the ISA chosen doesn't have much to do with the performance of CPUs
That's somewhat my point, the limiting factor for ISA performance is the physics surrounding the transistors.
You can see this in the fact that RISC-V and ARM architectures have caught up with x86 performance even though x86 has had a decade long head start and billions more invested in development.
We are quickly approaching a weird space. Barring some major innovations, you are likely to see that 10 year old equipment remains competitive with brand new products in terms of performance.