Correct me if I am wrong, but Ram helps support how many programs a computer can run at once. So with a PS3, you're never really doing 2 things at once (downloading demo/playing game). So 1gb of Ram doesn't really seem necessary.
Sublime, you should try this with your PS3s. But of course, only using two. Just to see what it does.
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RAM does primarily function how you said Kevin but it also does other things. The processor also contributes to how many programs (or processes) you can do simultaneously.
I think it's good that you can use the PS3 for such powerful computing, but people will start to get the idea it was designed for that purpose and then complain when it doesn't live up to expectations.
When they get bored with black holes and gravity, they could always have a COD4 LAN party.
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