TL;DR: Yes.
Longer explanation:
On Intel and PowerPC Macs, the BootROM code needed to locate and start loading an operating system from any storage device is in a separate flash chip on the motherboard (or in ROM on the oldest Macs). So your storage (whether HDD or SSD) can completely fail, be ripped out and replaced with a totally blank device, and you can still boot from installation media or (later on) network recovery to make that system work again.
On Apple Silicon Macs, however, the boot sequence is very different:
- The BootROM code is built-in to the SoC and has just enough code to locate a low-level bootloader (LLB), which is stored in a hidden section of flash memory.
- The LLB, after doing some security validation, locates a “Preboot” APFS container/volume on your SSD and hands-off the boot sequence to its iBoot software.
- iBoot is what then identifies the APFS container with macOS itself (or selects one, if there is more than one), and starts the boot/load sequence to get it up and running.
If you’re booting from external media, it is still the iBoot software (on your SSD) that is responsible for locating that system image and booting from it.
Which means that if your SSD gets completely wiped, you’re in trouble. If it is completely erased, then the LLB and iBoot software doesn’t exist and nothing can boot at all.
If your SSD is erased, but still works, the BootROM code can connect to another Mac running Configurator (via a USB cable), which can re-install this software. But if the SSD fails (meaning you can’t reinstall that software), there is no way to boot from an external volume.
Now, you might be thinking that the same can happen on a PowerPC or Intel Mac if the flash memory containing its BootROM code fails. And you would be right. But the difference is that on those systems, that flash memory chip is separate from the rest of the system. It is almost never written, and therefore rarely (if ever) actually fails.
I think Apple could avoid this problem if they would choose to use two separate flash-memory storage devices. One that is your normal SSD, and a second one which only stores the LLB and iBoot software. That second device would never wear out, because it would only be written on those rare occasions when Apple updates the boot firmware (worst case, 2-3 times a year), compared to your main SSD, which is written all the time whenever macOS is running.
I don’t think this would be a major technical challenge, but it would definitely require a change to the SoC, and would increase the parts-cost slightly (due to needing an additional storage device). This second storage device could be low-performance (e.g. an eMMC chip), and therefore wouldn’t cost very much, but it would be an extra cost.
Of course, another solution to this problem would be to allow user-replaceable SSDs. That is possible today: the Mac Pro and Studio both have replaceable flash modules, although they have to be cryptographically paired with the motherboard after installation. It wouldn’t be too big of a design change to support these modules on all Macs and to make the pairing software available. This way, if the SSD dies, you could replace it, pair the new module, and then use Configurator to put back the LLB/iBoot software prior to system installation.