There are already ARM based servers available in AWS. The big problem is: almost no one has desktop machines, where the software development happens, with ARM. Linus once commented that ARM doesn't sell so well on the server, because developers are lacking desktop machines with that architectore. Apple Silicon could close that gap. You can develop with a Linux VM on AS, and deploy on ARM in the cloud.
Of course it works. Otherwise there would be no ARM on the servers. But it is second class to a setup, where the development and deployment happens on the same platform. Having good ARM machines available on the desktop will give ARM on the server a boost. As I wrote, don't take my word for it, listen to what Linus hat to say on that topic.
Sorry, in general that is not true. You need a very good network connection, both with bandwidth and latency, to make remote devlopment workable. Still, it never equals local development. If you follow the discussions here on hacker news, which terminal software has the smalles latency, remote development never can compete with that.