There’s no technical reason why not. You could get a thumb drive of suitable size (32 GB? 64 GB?) and install macOS on it. And it should boot. But most thumb drives are really slow, so you wouldn’t really want to use it. But it might help you copy your documents from the internal drive to something else if you don’t have another Mac that could use Target Disk mode.
It depends on what failed.
If macOS is dead and you can’t boot into safe mode (unlikely because the SSV doesn’t change after installation, but anything is theoretically possible), you can boot into Recovery mode. From there, you can reinstall macOS, either preserving your Data volume or wiping it (after which point you’d need to restore/migrate from a backup).
You could also make a bootable installer on a thumb drive and boot that, which would boot to a Recovery mode that installs the OS on that thumb drive. If you try to install the same version or a newer version of macOS this way, it should work. If you want to downgrade, you’ll need to wipe macOS and your Data volume, then restore/migrate afterward.
If the pre-boot part of the internal SSD gets damaged such that Recovery isn’t possible, you would have to put it into “DFU” (device firmware update) mode and reinstall the pre-boot data from another Mac using Configurator. Configurator should also be able to reinstall macOS at the same time, after which you’d restore/migrate from your backup.
But if the SSD is damaged such that you can’t reinstall that pre-boot code, then the computer is going to be a brick unless you can replace that SSD. For Macs where the storage is soldered-down (which is most models), that’s going to require either a motherboard replacement (what Apple will do) or some microsoldering to replace the flash chips (what some very skilled repair shops can do). For Macs where the flash storage is installed in sockets (Mac Pro and Mac Studio), then the flash modules can be replaced, either by Apple or by a third party (there have been demonstrations of this, but no products yet), afterward you’d use Configurator to reinstall everything and restore/migrate from a backup.
The macOS installer, when run from Recovery mode, gives you the choice to preserve or wipe your data. But it can only preserve it if you’re installing the same version or an upgrade. If you try to downgrade, you should wipe everything and then restore/migrate from a backup.
That having been said, you can use Disk Utility from Recovery mode to delete your macOS System volume (the SSV) and then install an older macOS over that, such that it re-links with your existing Data volume. I did this for a small downgrade (from 14.7 to 14.6.1), but I don’t know if I’d want to trust that for something more significant, since I think it has the potential to make everything unstable in a hard-to-diagnose way.
Absolutely true. Which is why it’s so wonderful that cloning tools that use APFS (like CCC and I assume others) can create snapshots to preserve your backup history. You should be able to restore/migrate from any snapshot on your backup device.
Good question. I’d like to think it would work on a compatible machine (same model, maybe a different model with the same CPU type), but I haven’t read about anyone testing this theory.
Great use-case. You would want to boot the new Mac and migrate your stuff from your backup, but it would be nice if you don’t have to do it right away.