Will ARM include proprietary Apple VM tech of its own that will then be supported by the major VM vendors?
ARM can do virtual machines - but they are ARM virtual machines and won't run x86 code.
The reality is, if you want to run/maintain legacy x86 applications, an ARM Mac would be non-ideal - but it would be possible via an emulator (some of us still remember SoftWindows on PPC) such as:
- QUEMU (free)
- Windows for ARM (which includes an x86 emulator) although MS doesn't currently sell ARM Windows without hardware.
- The x86 emulator/translator that Apple would probably have to write to run legacy MacOS code
On the other hand, if you want to develop for iDevices or Android... an ARM Mac should be better (...although Android and iOS code is usually processor-independent, and testing iOS apps on mac works by compiling an x86 version of the App...)
If you are doing "web development" on Linux - Linux for ARM is well developed, most of the major packages have already been ported (go and look at what you can do on a Raspberry Pi - all of the usual suspects are there) and the major Distros already have ARM versions so you can work in a familiar environment. If you're using Apache, NGENIX, Node.js, Python, PHP, Mongo, MariaDB etc. running on ARM isn't going to make any practical difference.
Of course, if you're building Linux software written in C/C++ etc. you'll need an x86 machine (or emulator) to actually build x86 binaries for distribution - but unless you're actually working on x86-specific drivers or kernel code you could still do primary development on an ARM machine since Linux/Unix is founded on the principle of portable source code (and, its 2019, so you're probably gonna want to support ARM anyway).
Whether there will be enough demand for Parallels or VMWare Fusion to get ported is another matter (it will probably depend on whether MS makes Windows-for-ARM available to Mac users) but there is already a basic virtualisation kit in Mac OS (its used by newer Mac versions of Docker) which I'd assume would get ported.
There's a lot of interest in ARM as a Linux server platform now - and, of course, ARM is now the most widely used CPU architecture, so although an ARM Mac would close a few doors, it could open a lot of new ones...
That said, Apple have just launched an Intel-based Mac Pro so I don't think x86 Macs are going away any time soon - I suspect Apple's plan is to progressively replace the lower-end Macs with iPads.