Maybe that is the reason why Xcode has not been introduced on iOS, as it would only be able to create iOS/Swift software and not x64/macOS software. Developers are accustomed to having Xcode to write iOS/macOS software and emulation, something I suspect the iOS version would be unable to do.
I'll try to answer the question as simple as possible. A compiler can generate an executable file (an app or program) for any CPU or chipset out there as long as someone has programed it to do so. In reality all Apple has to do is write Xcode to generate the correct instructions for the platform the app/program is going to, so it really would not matter if an ARM based computer compiled apps for an Intel one.
Emulation is a different idea. what it does is use a program that converts a foreign instruction set to one that works on that particular computer. In Xcode when I test an iOS app there are simulators for iPhones, iPads, Watches... that run the apps on my Intel based MBP.
Now it gets a bit more complicated. These days computers don't always need CPU specific executable files because they can or do run programs/engines that send instructions to the hardware and the programs or apps only run inside these and are not hardware specific. Your web browser is a very good example of such software technology. A good web based app should be able to run on any browser regardless of the hardware. The only issues come when one web browser interprets the code different than another.
The major problems with emulation/engine or something similar is those programs use CPU clock cycles and thus slow down the program/app execution. For most general computer use this doesn't matter, but for time critical or huge computational needs it can slow things to a crawl.
Can Apple switch to ARM based Macs? Sure, but they better have their bases fully covered and be completely seamless with zero performance losses.
Personally my complaints with iOS are this; it still has a lousy multi-tasking OS, it needs a far better multiple view ability (app and view switching) and its file system has just begun to be open enough for decent use. Until they improve these few things it will never be a workhorse system. BTW these are not ARM limitations, Apple chose to design the system this way.
I think many tend to forget history, iOS started as an OS to run media and grew into a phone and computer system. OSX started as a computer system. a PC, that has matured into a whole lot more. I rarely watch videos, listen to music, read books or such from my MBP, but I do those things all the time on my iPad.