Well, now, on the player if you want to skip 10 songs real quick using the right button, you get stuck waiting for the disk(s) to spin up. With 256 MB of RAM, you could have the next 60 songs (or so) of the current songlist buffered into RAM. That would be nice.

No. It would not do this if you added extra RAM. And since the software which controls the caching is closed-source, it will not ever do this.

I have added a new FAQ entry on this subject.