This is sad.
On the one hand, it’s the right move to respect the developers’ wishes (particularly of small, independent apps). For a single-person developed application this feature could have a material impact on their bottom-line revenue over time.
On the other, this was a killer feature of the M1 Macs. Some iOS apps ran better than their native Mac versions, and some did not have native Mac versions at all! If your choices are between a side-loaded iOS app or a crappy electron wrapped non-native version, the freedom to choose the iOS version was thrilling. It’s hard to see who’s being hurt in those circumstances.
This change by Apple would not be such a disappointment had more iOS app developers checked the box to let their iOS apps run on Apple Silicon. Too few have given users the choice, for reasons ranging from financial (understandable), to the experience (eh who cares?), to simply control (large social media apps). If there was a rich ecosystem of iOS apps available on the Mac, it would feel like a win-win for developers and users alike.
Source: The Verge.