I'd say the entire point is precisely that these constraints, quite surprisingly, are too tight. You must loosen them. You have no choice.
It doesn't mean it's the end of all hope, it just means that it may not be quite as easy to "turn a crank" and get universal answers as we'd like.
I think a lot of people miss that Arrow's theorem is less a political statement than a mathematical proof, and end up bringing a lot of baggage to it that is not justified. It is what it is; it isn't morally "right" or "wrong", it isn't that it "misses something" or unfairly focuses on something else, it's just "true". What you do with it is up to you, but you won't change its truth or falseness value by arguing with it any more than you can any other proof.
It is entirely possible that reasonable voters will end up with a rock-paper-scissors situation among their top three preferences. Such a situation will "break" Arrow's theorem (rock wins an election vs scissors, but when paper enters now scissors wins).
But such a possibility doesn't mean your voting system is bad, it's completely fine to have that happen so long as one of the top rock-paper-scissors cycle wins. This property is true of a whole lot of voting systems that Arrow needlessly dismisses.