The fact we haven't seen any leaks about new physical designs might indicate that the first Apple Silicon Mac will just be renewed internals
I get the impression that Mac releases aren't so prone to "leaks" about physical design as iDevices - which often seem to come from case & accessory makers. Still, I wouldn't be surprised if what we see first is the current MacBook Air chassis with an ASi processor, and the re-designs have to wait for mini/micro-LED displays.
I think the issue was not that your statement was wrong (it wasn't), but that it was a red herring in a discussion about Apple Silicon.
The question remains whether they are working on an emulator (like QEMU & Rosetta) or just virtualization.
QEMU is cross-platform (at least in it's most basic, pure software emulation, mode), open source and just needs a regular 'consumer' Windows image, so it's quite likely that it will turn up on ASi Macs: A QEMU-based emulator -
UTM - is already up and running on iPad (albeit only with a developer account or jailbreak, it's not App Store-compliant). The website describes some of the limitations imposed by the iPad that rule out QEMUs more efficient modes of operation - some of which might be soluble under MacOS running on Mac-grade Apple Silicon. Also, there's actually be a use for it on a Mac so there's be more of a business case.
Doesn't sound like a performant solution
Running individual apps using Windows' own x86 emulation under native ARM Windows ought to be a lot better than running the
entire OS under emulation. Also, the lukewarm reports of emulated x86 Windows apps on WoA are based on the somewhat so-so processor in the MS Surface X which will (rumour has it) have it's clock well and truly cleaned by Apple Silicon.
OTOH there's been some speculation here about whether or not MS's 32-bit x86 emulation will work on 64-bit-only Apple Silicon - I'm not sure if anybody has provided a definitive answer to that.
Maybe Windows for ARM though? Does this require special Microsoft firmware?
Kinda irrelevant: Direct-booting Windows for ARM won't be useful without bare-metal Windows drivers for Apple Silicon disc controllers, graphics etc. and an installer that works with ASi firmware. To do that "officially" would likely require support from Apple, who have said that they're
not going to support direct booting. To do it "unofficially" (I'm not betting against the ingenuity of hackers when it comes to reverse-engineering etc.*) probably wouldn't be licensed by Microsoft.
Running ARM Windows under virtualisation doesn't require the OS to have drivers etc. for the actual hardware/firmware, as the hypervisor can always emulate supported hardware and translate it to the appropriate MacOS calls. It still needs a licensing agreement from Microsoft, but odds are that is already being thrashed out. My guess would be a joint venture between Microsoft and a Well Known Purveyor of Mac Virtualisation Software consisting of a Windows licence bundled with and locked to a Hypervisor.
Anyhow - virtualised Windows is probably what most people want, to run those one or two awkward Apps that have no MacOS equivalent without having to re-boot, inefficiently partition the disc and faff about with AFS-for-Windows or NTFS-for-Mac to share files. I can't imagine any ASi-based Windows solution will be good enough for serious 3D gaming or pro creative work to justify using a dual boot system. I wouldn't even bet that Windows on ARM has a future - the Windows market is so anchored to backwards compatibility for corporate customers.
* if you google, you'll find instructions for ARM Windows 10 on a Raspberry Pi 4. using a developer's preview of Windows-for-ARM of unexplained provenance. I couldn't find how any firmware/driver problems were resolved but then it's quite possible that MS are developing drivers for the Broadcomm hardware used by the RasPi, there are also open-source Linux drivers around, the RasPi uses emerging open standards for ARM firmware (and is a de-facto open standard itself) plus there is already an official release of "Windows 10 IoT Core" for it. Windows for Apple Silicon won't necessarily be like that.