I don’t think that it would kill desktop, but I’m sure that unless ARM will be much faster, developers will use x86 macs for a long time.
To really see the benefit of changing they would need to add a lot of cores, and then cross their fingers that 3rd party app developers know how to do true multi-core development.
If that team were to design a bigger core aimed at laptops, then I wouldn't be surprised if they could make it competitive.