"Wine is a good example of a Windows emulation." This is technically incorrect. Wine is actually an acronym for "Wine is not an emulator". What it does is translate calls to the Windows system libraries (.DLL files) into calls to macOS system libraries (and vice versa when the macOS system library function returns back to the wine translation layer). It does not perform 100% exact translation because without the source code to Windows, it's more or less infeasible to get to 100%.
Because Wine does not perform emulation, it cannot be used to game on an ARM mac. Even if x86-to-ARM emulation were to be performed, Big Sur only has 64-bit macOS system libraries so 32-bit translation cannot be done so 32-bit Windows software cannot be made to run and many legacy Windows games are 32-bit programs.
I agree that your best solution is to use a cheap PC for Windows gaming. It's not worth trying to emulate it on ARM - both for technical and performance reasons.