Proxy media is 1/4 the size of ProRes 422, which itself may be 10x the size of a highly-compressed camera native format. E.g, say the 4k camera captures in AVCHD, it is probably writing about 7 gigabytes every 10 min to storage.
That 7 gigabyte file if converted to ProRes 422 might be 70 gigabytes. Fortunately Proxy media is only about 1/4 the size, so it's "only" 17.5 gigabytes, or double the size of the camera native files. Generating those proxies is a transcode, so this also takes a long time on an underpowered system.
So proxy media does enable HD or even 4k editing on some lower-powered systems, but it's not a magic solution. At 4k you still need lots of disk space -- even for proxy files -- and you pay the time penalty of the transcode.
If the OP wants to give it a try, have at it. Before even getting the 4k camera, he can probably find some 4k camera native files to download and try editing. I think he'll find it doesn't work well (maybe at all) on his 2008 iMac, but I say give it a try and post his results here.
Understood, but (like you said) it won't cost him a penny to try. And no one else was even suggesting it. Everyone was suggesting that he spend $3k plus on a new machine, and he obviously doesn't want to.
I agree, though, probably gonna (at least) need more than 1 GB RAM.
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I think even a top of the line iMac with spec'ed out video card will still struggle some with raw 4k footage. The i7 will be fine, but the mobile video card will begin to choke down. Especially since the new FCPx is designed to work best with dual graphics cards.