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.
--
Adam Machanic
whoisactive