What matters most for cache is speed. Ae measures the performance of the disk cache as it’s used, and when something is faster to retrieve from cache than it is to re-render, Ae caches it to disk. This means the faster your drive is, the more you can benefit from Ae’s cache system.
In the olden days of spinning rust hard drives, this almost always meant dedicating a disk to cache. Other apps competing for disk access and reads reduced cache performance, and Ae would be forced to cache less and re-render more.
With today’s solid-state drives, though, the access and read bottlenecks that mechanical disks faced are gone.
The system drive on a MacBook Pro M1 Max is 7.4 GB/s. That’s incredibly fast. External Thunderbolt SSDs will top out at around 2500-2800 MB/s. That’s also very fast, but the internal drive is still 2-3x faster.
As for SSD wear, it’s real, but do the math. I don’t know if Apple has published anything on write cycles or TBW (terabytes written) for their drives, but your sample “10,000 write cycles” means you could re-write the entire drive once every day for 27 years.
I personally use the NVMe system drive on my PC laptops for the cache.