Exactly, people look at the specs and want "more power". What good is a Lamborghini if you're towing a trailer full of cow manure?
Differences in RAM from iOS to Android are like differences in the speed and number of cores in each device's CPU and GPU -
How does Apple keep iOS devices running as smoothly as Android devices at half the cores and less GHz? Similarly, how does Apple blow every Android device out of the water when the A6X only has 4 GPU cores versus the double digits in the Tegra 3 and others?
Better memory allocation and software optimization. What iDevices lack in raw computing power, they make up for by not only having tighter software/hardware optimization but also much better memory allocation and efficiency.
All you need to do is run geekbench to see this. Look at the 4 scores given and look at the scores for memory performance and memory bandwidth - apple's chips/RAM perform better on these scores almost every time (some by wide margins).
This (and the difference in "multitasking" between iOS and Android) is why Apple keeps specs where they are. Because the entire package is tightly optimized for maximum efficiency and overall performance that keeps up (and in some cases surpasses) the competition.