Sometimes, sometimes not. Depends on the machine and the particular sheet in question. For some machines, 40°C seems to do the job for mostly everything.
20 is fine with biological detergent, but people can have adverse reactions. But over 60 is recommended for bedding, to sterilise the microbes that grow there.
The best way to maintain good-looking sheets is to wash them in low-temperature cycles—cold water is ideal. Sometimes, though, you will need to use warmer wash cycles. We recommend using warm water to lift out tough stains, like coffee, because the heat helps loosen and lift out the stain. We also use hot water to disinfect bedding after an illness or potty-training accident, or to get rid of allergens like dust mites.
In Laundry, Mendelson suggests avoiding sheets that have fussy care instructions because of this: “Your everyday sheets, especially those on infants’ and children’s beds, should be easy to launder vigorously and should never require gentle or complicated treatment.”
That seems more like commenting about minimums and saying it's good to have sheets that aren't fussy. If anything, it seems like they recommend buying sheets that could handle being washed at 60C if needed.
All Ikea sheets can be washed at 60C. Washing at 60C is important for sanitary reasons to kill skin pathogens and mites.
You spend 30% of your life wrapped in the same 2 or so sets of fabric, often sharing with them with other people. They need to be disinfected to discourage diseases like fungal infections and scabies.