I wonder if the system on a chip design of Apple Silicon would work for servers. Would it just be a special packaging that crammed several Mac mini boards into a rack mounted chassis? If so, then they would just be repeating what others are already doing.
The RAM being part of the chip seems like a limiter to scaling up to a server model with a lot of cores and RAM in a single blade.
Not saying this is not all doable just that it probably requires design and investment they otherwise do not have any desire to do.