not surprised about the chrome part, but pretty shocked at the phone OS part. I know APFS migration was done in this way, but wouldn't storage considerations for this be massive?
Not really, because only the OS core is swapped in this way. Apps and data live in their own partitions/subvolumes, which are mutable and shared between OS versions.
The OS core is deployed as a single unit and is a few GB in size, pretty small when internal storage is into the hundreds of GB.
what would be more massive would be phones not booting up because of a botched update. this way you can just switch back to the old partition