Better signal integrity could allow for larger busses, but I don't think this is actually a single 512 bit bus. I think it's multiple channels of smaller busses (32 or 64 bit). There's a big difference from an electrical design perspective (byte lane skew requirements are harder to meet when you have 64 of them). That said, I think multiple channels is better anyway.
The original M1 used LPDDR4 but I think the new ones use some form of DDR5.