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They do - it's 32-bit processors that don't allow above 4GB. I'm actually not certain on how much 64-bit's allow; it would be interesting to find the formula on how it works.
As for needed, that's exactly my point. The only situation where it would be needed is running a heavily-loaded server. Games, no. The most any games now use is 1GB, though I have a feeling Unreal3 might push it to 1.5-2GB (check out the screenshots if you don't believe it).
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