Maximum x86 Performance in Windows 11 ARM Guest

I have tried to play a triple-A game (Final Fantasy XIV) on my M1 and was shocked by how it ran between 25-30 FPS.
I am running MacOS ARM and Windows 11 ARM inside Parallels. This was shocking to me, as I did not expect it to run.

Then I heard about the great work that went into the Parallels Display Adapter do D3D to Metal translation.
I was told x86 emulation is the FPS bottleneck. Then, I read about how Windows' x86 emulation is not at the level of Rosetta 2.

Have the Parallels devs thought of ways to leverage Rosetta 2 inside the VM? If x86 is the bottleneck, it is the last piece of the puzzle for Mac gaming.
If Wine can do this with exe's to some degree, there must be a way VMs can do it as well, even if only partially.

It sounds crazy, but can Parallels replace Windows' built-in WOW64 emulator and pass it up to the host, kind of how it made the graphics driver? @sergk
This can be a game-changer if it is possible.

If I read it correctly, Wine does something with the WOW64 DLL.

 

I may be wrong, but I think that Apple allowing Rosetta 2 to translate Intel binaries on Linux VM (acting as the x86_64 ELF binaries executor --> https://developer.apple.com/documen...ning_intel_binaries_in_linux_vms_with_rosetta) could be a huge step forward. Valve's huge work around Vulkan would be so profitable then.