I think you might be underestimating the complexity of the task. While these newer machines are much, much faster at processing data, there is still quite a lot to do. Decompressing and verifying multiple gigabytes of patches is a lot of work, and system updates are much more involved than just copying some data. Not to mention that a lot of the install process does not depend on the CPU speed — there are hardware tests do be done, data written to the storage, internal encryption systems to engage... Over the years, Apple did a lot of foundational work to make updates faster and more secure, much of the improvements come from the system design (avoiding work) rather than making the hardware faster.
Is it potentially possible to do a system update in seconds? I do believe so. It would require a system that does the update in the background, while you are working with the computer, and then quickly "activates" the new system on restart. Internal tests are still a challenge though.