Wrt renegotiating with ARM, there is no leverage for AMD. TrustZone is already baked into their chips for the next 2 to 3 years, and if the negotiations go badly then ARM could block AMD from selling any processors for at least a year.
AMD did hire a security consultant (due to the Change.org petition) that told them TrustZone was vulnerable, but this means they need to implement their own PSP which is something that will take 3 years or more (silicon has a very elongated development cycle).
Had AMD not been on death's doorstep for the years preceding the new Zen architecture, they likely would have built their own PSP. Being financially insolvent and desperate to meet the requirements of their OEM partners forced them to license a pre-built PSP.