Loop resistance affects Q. If you have high loop resistance the Q will be lowered, turning the antenna into a dummy load, rather than a radiator.
Yes, but the same principle applies to any resonant antenna - including dipoles, Yagi-Uda arrays, and others. This is not unique to magnetic loops. Higher conductor (loop or element) resistance reduces the Q-factor and increases Ohmic (thermal) losses, which in turn reduces radiation efficiency. In the worst case, the antenna acts more like a dummy load than a radiator.
If you consider where the power fed into an antenna can go, there are only two destinations: radiated electromagnetic energy and thermal losses. These thermal losses are directly determined by the resistance of the conductors used in the antenna. The rest of the power must be radiated - it cannot simply disappear. This is a fundamental consequence of energy conservation.
Moreover, regardless of antenna type, if two antennas have similar physical size and resonant frequency, they will tend to have similar Q-factors and similar thermal losses - assuming similar materials and construction. This is because the radiation resistance and conductor resistance scale in predictable ways with geometry and frequency. So it's not about the type of antenna, it's about the physical constraints and quality of construction.
Therefore, reducing conductor resistance (e.g., using thicker wire, better materials, or soldered joints) improves efficiency in all antenna types, not just magnetic loops.
However, on the other hand, excessively high Q-factor is not always beneficial, as it can result in an overly narrow antenna bandwidth, which may be unacceptable in some cases. Therefore, it may sometimes be necessary to intentionally use conductors with worse conductivity in order to reduce the Q-factor and broaden the antenna bandwidth, even at the expense of efficiency.
That's why Q-factor more than 2000 is not practical for small antennas. For 500 kHz carrier Q-factor of 2000 leads to just 250 Hz bandwidth which is too small for common applications, even for CW.