Update:

>> The speculation that ARM will be used as a basis for a design that
>> interprets X86 code (similar to Transmeta)? No, I can't see that.

> Thanks for addressing this speculation. I'm with you on that one. It's hard
> to see that such a solution could make sense performance-wise. Even the
> author of the article circulating that speculation agrees with us on that.

News from that author regarding x86 compatibility of Denver:

"T50/Tegra 5 is now known as Denver, but the x86 part has been dropped for legal reasons."
http://semiaccurate.com/2011/04/06/nvidia-in-full-philosophical-retreat-for-tegra-3/