Interesting. I understand very little of that, but I know 3 things about Apple:
1 - Apple innovates.
2 - Apple designs things to go in Apple products and nowhere else.
3 - Apple has never given 2 
s about sound quality.
These things seem to be at odds with this news, but I will “watch this space”. 
This is very interesting and potentially promising.
I think the AirPod pros 2 are quite good. I really enjoy them, especially when watching content. The technology is amazing. And for them to get better is an awesome thought.
And I feel apple does care about music. Beats were a complete joke until Apple bought them. And before that, you have the iPod.
Steve Jobs created the iPod because he was a music loving audiophile. He personally chose Wolfson chips as their supplier because they were the best large scale production chip to his ears. People refurbish old iPods because of their sound (based on Wolfson chips).
But he also cared about the bottom line. He dropped Wolfson from their newer products starting in 2008.
They opted for Cirrus Logic instead, which later acquired Wolfson and took their best engineers.
Edit: I also don’t think people who buy the gear we do will just stop because AirPods or something from Apple gets better.
But it could definitely impact the IEM and DAP world.