Pyrric victory
As the first poster says, this seems like a bad battle to be having for Arm, and does show their hubris. Having worked there for a few years, I can see how that might happen ;)
But really, what is the upside here? Qualcomm is already a licensee of some sort, so surely if they bought Nuvia, then Qualcomm has a licence either way (either their own or Nuvia's). Obviously, I am not a lawyer.
Seems like these kinds of battles will push the lower end (but absolutely massive quantities of chips) to RISC-V, because compatibility and performance aren't required for these embedded chips. So, it might be harder for the high-end to leave the Arm ecosystem, but if Arm are bullying "partners" then the partners might try and put the effort in to make RISC-V more viable on the high-end. And surely, Apple is already working on RISC-V designs because they're Apple.