I am just worried about all my developer tools (Docker, VMware Fusion, VirtualBox, brew) all breaking switching to ARM.
If so that rules out a significant number of development use cases.
So there will be no way to run Windows/Intel in a VM? Or even Linux/Intel or older versions of Mac OS for that matter?
That's bad.
Instead, what you will do is get a new version of x86 virtualization applications (like Parallels) that run directly on top of Apple Silicon--in other words, you use them instead of Rosetta 2, not on top of Rosetta 2. That's what easton is talking about, above.
So having Docker working on the ARM version of linux is a good portion of the work needed to get it to run on ARM MacOS. You still have to get the VM and communications setup done, but Apple has already said they have done much of that work.