There's a special aarch64 build of the software available, so it clearly runs on ARM. Perhaps there's some kind of issue specifically on macOS that makes the existing ARM port incompatible with Apple's ARM implementation?
I can’t imagine what you mean by this, Rosetta 2 is a binary translation system implemented in software, based on QuickTransit. There are a few features implemented in Apple Silicon to make translation easier and more efficient, such as supporting Intel memory ordering, but thats about it.
I think it’s reasonable to worry about how long rosetta2 will be available. The first version, that allowed Intel Macs to run PowerPC binaries, was available for 5 years. Having said that, there’s no guarantee versions of MacOS beyond 5 years time will run on today’s M1 anyway (though M1 compatible versions will likely still get updates beyond then).
For starters, the Mac became a lot more popular in the Intel era than it ever was while on PPC, so there's a much larger quantity of legacy software that Apple would be cutting off. Secondly, the overall user experience of running apps via Rosetta 2 seems to be a lot better than Rosetta 1. And for Apple, Rosetta 2 was developed in-house and doesn't require continuous licensing fees to keep around (not that I'm particularly sympathetic to Apple's pocketbook.)
I don't think any of those things matter; Apple will stop supporting Rosetta 2 as quickly as they can. They announced the transition to Apple Silicon will be two years and unless something unforeseen happens, that's what it's going to be.
I suspect that Rosetta 2 won't be available for new Apple Silicon Macs running macOS five years from now.
Of course, no matter how many years in advance Apple warns that a particular technology is going to be deprecated, that never stops people from complaining vociferously when it happens.
A great example is 32-bit apps, where Apple gave something like an 8-year heads-up that 32-bit apps were going away, which happened a few years ago but it's not hard to find threads on HN where people are still complaining about it.
