Nvme PCIe 4 SSDs are quite fast now tho, you can get between DDR1 and DDR2 speeds from a modern SSDs. This is why Apple are using their SSDs as swap quite aggressively. I’m using a MacBook Pro with 16 GBs of RAM and my swap usage regularly goes past 20 GBs and I didn’t experience any slowdown during work.
Depends if the allocated memory is actively used or not. Some apps do not require a large amount of random access memory, and are totally fine with a small part of random access memory and a large part of not so random access and not so often used memory.
Alternatively I can imagine that MacOS simply has a damn good algorithm to determine what can be moved to swap and what cannot be moved to swap. They may also be using the SSD in SLC mode so that could contribute to the speedup as well.