Can I populate a droplist in sitecore with a list of values by directly specifying them in the source field like Apples|Oranges|Grapes
and have them show-up on the template instead of actually creating items for each value and then writing a query pointing to the parent?
There is no default functionality for this. The typical approach would be to create a folder containing items with each of these names, and set that folder as the source of a standard droplist field. But I would use droplink instead of droplist, because then you have strong references by ID rather than weak references by name, and those references appear in the links database.
Alternatively, you could probably achieve this by overriding the droplist control.