That's precisely what MS is allowing. From Thurott's article:
"Even better, Windows 10 on ARM will supply a long-rumored feature: The ability to run 32-bit Win32/x86 desktop applications—Apple iTunes, Adobe Photoshop, Google Chrome, whatever—directly on the system, unchanged."
I suspect that MS probably would have very much preferred not to have to use emulation, which is always a tricky business, for Continuum on the Surface Phone. Curbing resource intensive apps is a vastly less complex engineering problem.