I don't think we're on the same page. I am discussing the current state of arcade and the current state of mobile, though you keep bringing up Virtual On - a game from 1995 that is incredibly hard to find in western arcades.
I believe that both arcade and mobile have their positives and negatives, and I think it is unfair to brand mobile as "forgettable and consumable" and arcades as "immersive and skill based".
Don't get me wrong, arcades have some great games like SW Battle Pod and H2 Overdrive, but they are also filled with far too many cheap redemption machines and the Virtual On-type games you are mentioning are lucky to be around if the arcade management can be bothered to upkeep them. By that same token, mobile is filled with far too many cheap games and tactics that mimic redemption games, but there are also plenty of great recent efforts like Sword & Sworcery, Heroki, Sonic 1&2 Remastered, Chain Chronicle, Spell Tower and Zen Bound.
Circling back to the focus of this topic, I think it's great that Mie Kumagai is developing a mobile game and I think it is shortsighted and naive to think that SEGA arcade talent developing for mobile is a bad thing.