Whole thing sorta smells like Apple trying to further assert the dominance of AArch64, what with their insane stake in the ISA and it's eventual dominance. Not a terrible thing inherently, but the push to depreciate 32-bit hardware and software alike was pointless. 32-bit ARM can (and should) live alongside AArch64 as an ISA. From what I understand, the M1 even has secure 32-bit emulation mode built-in, without any OS functionality to leverage it.
Whatever Apple does, it's hard for developers to treat the Mac like a regular development target now. Besides the ISA change, the push for Metal-agnostic GPU pipelines has left developers scrambling. Massive open projects like Blender didn't even have an Apple Silicon strategy until Apple sponsored one. It's a bit of a mess, and kinda tragic that Apple is pointlessly complicating cross-platform development.