If a FD fails, can the iMac work solely on the basis of external storage? Forgive my ignorance please.
Yes, it can.
You can use either the thunderbolt port, or a USB3 port, to boot and run a Mac from an external drive (HDD or SSD).
Doing so with an external SSD will give very good boot and run times, although not quite the equal that you would get booting and running internally.
But some other thoughts here, as well.
Pardon my ignorance, but do the retina iMacs still use a SATA-based SSD, or are they using the new PCIe blade-drive technology?
The PCIe blade drive SSD should be considerably faster than a SATA-based SSD.
If you get an iMac with a fusion drive, you can actually run it two different ways:
1. as a "fusion" drive, with the internal 128gb SSD and 1tb HDD "melded together" (the factory configuration),
or
2. as a separate 128gb boot drive, AND a 1tb HDD (by "un-fusing" the drives manually, and having two drive icons on your desktop instead of the fused one).
By un-fusing the drive, you will get the advantages of the SSD running at its full speed, all the time. The "disadvantage" is that you will have to manage the two drives as two separate volumes. Some folks have a problem with this. I have NO problems with it at all. I normally keep no less than SEVEN drive icons (volumes) on my desktop at all times.
One other definite advantage of Un-fusing the drives is, if one of the internal drives fails, you will still have the other one operable with all the data that is still on it.
If the fusion drive fails, you "lose everything" and will have to go to your backup.
Aside: if one drive of the fusion drive fails, you probably can use Disk Utility and Terminal to get access to the remaining "good" drive, and "revive" it, but you'll still lose the data that was on the fused setup before the failure (again, this is why you need to keep the fusion drive backed up).