None of anything of what you said makes any sense at all. I absolutely develop web applications on my Mac, using a graphical IDE. I've also developed for Arduino boards using a graphical IDE on my Mac. I've written software natively on my Mac that I put into production on Linux and Windows machines. And all of that is supported on the M1 as well. They even built a complete and complex and powerful subsystem to allow you to run Intel code on their new processor.
Apple has never stopped me from installing VSCode or Atom or Sublime or Jetbrains and they've never given me any reason to think they would do so in the future, especially given Rosetta 2. I've never run a VM on my Mac.
I have no idea what point you're trying to make here, so I'm trying my hardest to argue against the best possible interpretation, and that interpretation is still so unbelievably wrong that I still feel like I must be missing the point.
So I already wrote that I was exaggerating slightly, and I still believe your case fall into that. For example about embedded dev, I had in mind things less individual tinkerer oriented and more productized. I don't know: set-top-boxes, base stations, software for trains, software for washing machines, smartcards, etc; or even big equipment controlled by an OTS desktop/laptop-like computer, or a PLC. I'm sure in a few exotic cases Mac will be involve here and there, but lets be honest, Windows as an host dev station is far more probable. Maybe a few Linux too, but probably far from the majority. And Mac OS would be probably: very far.
Now about running Intel code, I know about the excellent x86 emulation layer Mac OS+M1 have, and it's great, but I actually don't care at all for what I was thinking about, I think that broadly apply for x86 Mac as well. I'm more thinking about the software ecosystem, the precise HW CPU for devs is only interesting maybe for people developing SIMD code or, well, running VMs.
About running VSCode & co, that's great to but where are the toolchains for Mac OS host for the targets I talked about? That's why I qualified Mac OS in this case as merely used as a "terminal", I was speaking in the broad meaning of the term, a graphical terminal, not just a VT100 like terminal. The actual toolchains are elsewhere.
About web-dev, I admit that's probably where you can do most of the non-Apple-only dev while staying really native, although probably not if you need a complex server-side setup. Arguably I went way too far when I wrote "no web".
Well, nothing is absolute, and I know Mac OS remains a general purpose OS even able to host some serious dev. Just I think it is not really the most used one outside of let's say client related consumer tech and some pro-desktop tasks, mainly on Apple techs. Claiming embedded in the general case would really be stretching the narrative.
Apple has never stopped me from installing VSCode or Atom or Sublime or Jetbrains and they've never given me any reason to think they would do so in the future, especially given Rosetta 2. I've never run a VM on my Mac.
I have no idea what point you're trying to make here, so I'm trying my hardest to argue against the best possible interpretation, and that interpretation is still so unbelievably wrong that I still feel like I must be missing the point.