I noticed that too. Might have trademark or legal reasons though. Technically, if they're able to dynamically translate x86 to ARM as they've explicitly stated (with JIT of JS and the JVM as the example) they should be able to dynamically translate x86 VMs regardless of what OS they contain, which would allow x86 Windows to be virtualized with better-than-interpreted performance.
Or at least that's what I hope ;-) I'm relying on running x86 Windows and Linux within Parallels in addition to native MacOS Apps to do my daily work, which involves compiling and testing x86 binaries for these platforms, so whether this virtualization thing actually runs x86 OSes transparently is an absolute make-or-break feature for me to continue my usage of the MacOS platform for work.
I don’t think that would perform very well without some hardware support for it as well. Not an expert on this by any stretch but as I understand it modern virtualization is almost always hardware accelerated which I can’t imagine is a viable option if you’re translating the binaries with Rosetta.
Or at least that's what I hope ;-) I'm relying on running x86 Windows and Linux within Parallels in addition to native MacOS Apps to do my daily work, which involves compiling and testing x86 binaries for these platforms, so whether this virtualization thing actually runs x86 OSes transparently is an absolute make-or-break feature for me to continue my usage of the MacOS platform for work.