This is a very strange problem, since applications inside Mac OS only sees the amount of RAM that has been allocated to it.
For this reason I see absolutley no sensible reason why applications should have any "problems" with alot of RAM in the system, since it only sees whats allocated to it.
I have heard that there is a "problem" when using more than 1.5gb of RAM with Mac OS 9. This is a classic myth.
I have allways had 2gb (or 1.5gb in the "Gigabit Ethernet" I have owned since new) in my machines without any problems, and have been running Logic 4, 5, 6, Nuendo, Cubase and Pro Tools with that amount for many years without any issues at all.
From Wikipedia:
The situation worsened with the advent of Switcher, which was a way for the Mac to run multiple applications at once.[7] This was a necessary step forward for users, who found the one-app-at-a-time approach very limiting. However, because Apple was now committed to its memory management model, as well as compatibility with existing applications, it was forced to adopt a scheme where each application was allocated its own heap from the available RAM.[8] The amount of actual RAM allocated to each heap was set by a value coded into each application, set by the programmer. Invariably this value wasn't enough for particular kinds of work, so the value setting had to be exposed to the user to allow them to tweak the heap size to suit their own requirements.
This amount is what the application sees, and nothing else. So I don't see how more RAM makes this a problem.
Perhaps the problem is that Mac OS allocates RAM from a bad memory addess to the application when the system memory is larger than 1gb, and that makes it behave irrationally.
If this is the case though, all applications that run under Mac OS should be affected, and not just Logic.
I think this was an issue of broken RAM modules that got mistaken for an issue with system RAM size.
"I removed the last module, and it works now with just 1gb of RAM". Probably something like that.
So, I think all of this just is some mythical thing that has been getting bigger and bigger over time.
Like I said, I have never even had any trouble EVER with more than 1gb RAM in a Mac OS 9 machine.