They'll be fine if they focus on their microarchitectures rather than the ISA (where IMHO they've already lost), and make the process for obtaining a license much more streamlined; I've heard it takes no less than 18 months of long negotiations to license anythin from ARM. That's not sustainable now that there's competition.
High performance implementations are possible even with bad ISAs, given enough resources.
x86-64 is much worse than ARM. It's a literal clusterfuck. And yet.
A high performance implementation of ARM, which is a much better ISA than x86-64, was something expected to happen sooner or later. It did not surprise me.
No amount of FUD will save ARM. Only pivoting into a different business model could.