I think Wayne is correct.
It is worth noting that the coldest places on Earth are actually among the driest with the lowest humidty, so as Wayne says dessication is a huge problem.
It would make sense that Larch trees & other conifers to have needles rather than broad leaves as typically the Summer season is very short, as soon as broad leaves appear (think Maple, Oak, Ash, Horse Chesnut, etc), the tree would shed them, i.e goes straight from Spring to Autumn. Also producing needles uses less energy than producing leaves.
But the Larch is unique in being the only deciduous conifer tree. I wonder if it did evolve from a geographically specific broad leaf species??? Or could just simply be that it is best suited for that environment.
At the high latitudes although daylight may last 24 hours during the Summer, the Sun itself does not rise very high at Noon, so perhaps millions of needles on one tree is also more efficient at collecting the weak sunlight, as the Sun will appear broadside on at a greater range of angles than leaves.
Interesting subject.
Andrew Brown.