I really wish I could use Typst, but to be honest, it doesn't work with any journal I know of, let alone arXiv. It feels like a chicken-and-egg problem to me; I can't see most people who use LaTeX moving over unless journals and preprint servers adopt it, and I can't see journals or preprint servers adopting it unless people move over. Still, it's early days, I and wish the community good luck and I genuinely hope that one day I can ditch LaTeX for something markdown-like.
Yeah, from discussing this with friends in academia it seems like this is the biggest hurdle at the moment. Someone on Reddit reached out to arXiv [0] and their response was very negative towards it, which seems unfortunate:
> At this point, we’re more likely to add support for .docx than a markdown language.
I've seen that too, yeah. It's unfortunate, but also completely reasonable; docx is actually surprisingly common outside of physics, maths, and CS, and it is almost surprising that it's not supported since OOXML an open format now.