A question always worth asking: Had this system been implemented in 1995, would we have ARM-based devices today? Why or why not?
Note that ARM never attempted to compete with x86 on performance, and indeed still can't. That doesn't mean that it wasn't useful for other purposes.
So yes, new processors are at a huge disadvantage unless they bring something to the table that none of the existing ones have. But the question is whether you want to prevent a processor that _does_ bring something new from being usable by making it impossible to use the web on it.
Note that ARM never attempted to compete with x86 on performance, and indeed still can't. That doesn't mean that it wasn't useful for other purposes.
So yes, new processors are at a huge disadvantage unless they bring something to the table that none of the existing ones have. But the question is whether you want to prevent a processor that _does_ bring something new from being usable by making it impossible to use the web on it.