Every couple years Microsoft pretends to care about ARM, pushes out a product that nobody buys, and quietly sweeps it under the rug so they can pretend like the next one is a big deal.
At the end of the day, I think people just don't want a nerfed computer that forces you to use a phone-style app store that charges inflated prices. Because Microsoft is going to make their ARM products locked into the Microsoft store again, just like every other time, right?
I don't think that Microsoft understands that if they limit features of their desk-sized computers to make it work like a phone... then people are just going to use their phones.
Like I'll keep a laptop around because mobile websites are awful, feature limited, and often broken. I usually can't pay my bills with a phone, because a lot of the places I need to pay bills tend to not have an adequate mobile page. Since "desktop mode" doesn't do anything useful anymore, well that's one reason to keep a PC handy. But when Microsoft inevitably decides they can compete with android by forcing their desktop browser to only display broken mobile pages, I wouldn't say "Well it's broken in both places so I might as well leave the phone at home and take the laptop". I would just ditch the useless laptop.
Microsoft could delete their app store and lean into the high performance, customizability, flexibility, open marketplace, wide compatibility, or any of the other things a PC can do a lot better than mobile... but they refuse. Their current leadership apparently has no idea what product they are supposed to be selling.