Or in other words, when your ARM without SMT stalls, the execution resources are wasted, as Xenu intended. Letting another program use the functional units unused by your program is an abomination before Xenu.
No, it's the opposite. An ARM core is much cheaper than an x86 core so you can get more cores for the money. And an ARM core is cheaper than an x86 thread while providing more consistent performance.
For one thing, everyone is painfully aware of Intel's monopoly pricing a few years ago before AMD came back to life. To prevent this, 3 supplier of CPUs seems minimal, so there can be dynamism of check and balance. (2 is insufficient, as seen from Intel vs. AMD)
It doesn't, that's what's great about it. But ARM equipment is generally better value than x86 and I would expect Google to offer it as a more affordable target config (like AWS does).