All such NAND option, or "single package BGA ssds" available on the market have significantly larger package size and those cannot be used in iPhones due to its size alone:
Even in Macs such option still has its own problems to have the controller embedded in the NAND packages. Apple can scale the internal storage from 256GB to 8TB simply by adding more or using larger NANDs, but having controllers being embedded into the same package is not as trivial and how much storage you can have in a single package is more limited, and once you want to split it out to make the packaging easier then why not using external controllers in the first place?
Also, having embedded nvme controllers in the SoC can directly using the system RAM as the SSD DRAM while traditional approach you have to either make an on-module DRAM cache too boost performance or use the HMB DRAMless technology but sacrificing performance. Apple's implementation is definitely not the fastest SSD on the market, but it is still faster than other options with similar module form factor size.
Apple also has special requirements to its SSD controllers to implement their platform security properly, this includes the on-the-fly full disk encryption. Since the very first Apple Silicon Mac, the full disk encryption is no longer optional and your data partition will be encrypted even when the FileVault is off. On Apple Silicon Macs, all FileVault does is to encrypt you machine key additionally with your user key. The standard encryption ensures others cannot read your data simply by removing your NAND, and the FileVault ensures your data cannot be read even they managed to get the whole machine but does not know your user key. Yes there are standard self-encryption SSDs over the market and the ones for enterprise also have serious security features. But those still comes with its own controller and still faces the problems listed above, and if Apple has the in-house encryption system originally developed for iPhone and being tested by gov agents like FBI already, just use that is not only easier to reduce potential security flaws, but also a more economical choice.
To make it simple, the ability to use the same hardware and software for iPhone, iPad and Mac is a big enough advantage and a strong enough reason for Apple to use their in-house design. This reduces costs on their side. People may argue this is anti-consumer, but the available "consumer-friendly" way to do the same thing will just give us worse designed product so there is really no silver-bullet.
In my own opinion, the problem was never how "proprietary" Apple developed their storage system, it is how the storage is ridiculously priced.