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True, but I'm assuming that you wouldn't die. Besides -I could be wrong about this I admit- I don't think every stage even has 100 star bits if you were to go through the entire stage without dying. Stages like Clockwork Ruins Galaxy comes to mind.
Also, since we're talking about deaths and obtaining 1-ups, the first stage perhaps contains the second best way to get easy 1-ups. The place with the giant coin and 3 1-ups, plus the invincibility game with 3 more, plus the extra 1-up on the side above the disappearing platform that you can't miss.... you could technically get 7 1-ups in a row, die, and come back for 7 more each time. Almost too good to be true!