You're both missing the point
The big advantage of ARM is not architecture, as there are other RISC processors out there that can beat it at its own game.
The big advantage is the ecosystem, where one can buy an ARM chip from just about anyone, and anyone can join and be fabless too.
That drives the prices down, turning the market into something Intel does not want to be a part of, as they have demonstrated in the past leaving markets when margins became too low.
Your comparison between a core iN and an ARM core is not adequate, the x86 core in the Intel CPU has a bajillion more features (x86 decode, SSEs, AVX, specific decode/encode functions, etc.) and wider computing units on top of a lot more cache and having 64bit support. And they're way more than twice as fast, even if pure DMIPS is about a factor 2 between a core i5 quad and an arm cortex a9 quad like the iPad cpu, you have to remember that's only integer performance and hardly representative of overall performance.
The big reason the Intel cores win that round is because they're much wider and consequently have more IPC than the ARM core which is really really tiny. You could for the purpose of benchmarking include a wider Integer Unit in the ARM core and get exactly the same DMIPS/clock as the Intel, but the CPU would still be quite inadequate.
Either way, there is NO competition between 22nm and 32nm chips, since the first cost MUCH more to produce at the moment, and Intel's process is still far from maturity, as the first Ivy launch demonstrated - let's wait till they get it right and we'll see exactly how far behind TSMC is.
Plus, as the number of bleeding edge -capable foundries shrinks, I wouldn't be surprised to see TSMC emerge as a winner and end up with more fab capital than Intel, which it's worth reminding, is only worth about 20 new fabs right now ( as the costs rise for every additional process - at the moment at least - Intel could very well end up facing too high a capital cost to remain one node ahead).