Adobe appear to have certain CC apps in beta for the ARM Mac version. They seem to be prioritising the most popular or high performance apps. All others appear to work under Rosetta 2 with some limitations. I imagine most apps will get native updates over the next few years.
You would install Rosetta. Pretty much everyone will need to for something. Rosetta doesn't poison your native apps or slow them down, unless you ask it to.
When you install a "native" app it's actually going to be a "Fat binary" to use Apple's jargon. That means it's going to have BOTH an ARM (M1) and Intel (old) app in the same file. Mac OS is always going to prefer the ARM part of the app on an M1, unless you go into finder and turn off "open with Rosetta". There should be no case where it says "open with Rosetta" unless you set it yourself. Or do I miss something?