Snapdragon X surfaces will launch in near future as well. Hope they are more competitive with Macbooks.

Isn’t the issue there a software issue, not a hardware issue, in that a lot of windows apps don’t run well on ARM yet?

The issue is twofold:

1) Windows on ARM's x86 emulation sucks;

2) Apple Silicon are the only ARM parts that aren't dogshit slow compared to desktop processors.

This is why Apple is building the future and virtually no one else is: Apple controls the entire hardware and software stack from the silicon on up. A hybrid hardware-software solution, in the form of Rosetta 2 plus special modes in the M1 and later chip to enforce x86 style memory access, allowed Apple to emulate x86 apps at acceptable speed.