It certainly doesn't "lack RAM", it has less RAM than the iPhone 4 and certainly less than the next version will have, but you won't use up 256MB at all. Not to mention, it's all flash memory, the storage space is nearly as fast as the RAM AND the type of multi-tasking that iOS uses, Apple could easily utilize a "Page File / Swap File" type setup IF that RAM was utilized. It doesn't really need it at this point for any software currently out there.