Ahhh, answered my own question:

--

DECLARE @tbl table (id int)

insert @tbl values (1)

insert @tbl values (2)

insert @tbl values (3)

delete x from (select top 1 id from @tbl order by id desc) x

select * from @tbl

--

Result:

Server: Msg 4428, Level 16, State 1, Line 6

The derived table 'x' is not updatable because the definition contains the TOP clause.