Someone on that thread was saying that the M1 may be using on-chip DRAM as L2/L3 cache. Not sure how true that is.
Any advancement in the storage hierarchy means reducing latency at one level or increasing the amount of memory at that level.
Most caches would use SRAM instead of DRAM, but the technology used doesn't define its role. Microcontrollers often have only embedded SRAM, serving as main memory.