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They are not phasing it out for virtualization.
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Only reference I can find is:

"Starting with computers using macOS 28, Rosetta functionality will be available only for certain older, unmaintained games that rely on Intel-based frameworks."

https://support.apple.com/en-us/102527

And

"Beyond this timeframe, we will keep a subset of Rosetta functionality aimed at supporting older unmaintained gaming titles, that rely on Intel-based frameworks."

https://developer.apple.com/documentation/apple-silicon/abou...

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Been using Colima to run mixed architecture container stacks in docker compose on my M3 Mac and the machine barely blinks. I get a full day running a dozen containers on a single battery charge.

Colima is backed by qemu, not Rosetta, so if Rosetta disappeared tomorrow I don't think I'd notice. I'm sure it's "better" but when the competition is "good enough" it doesn't really matter.

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