Indeed. For proper multitasking you needed more memory and fast hard disks...
I remember when I was coding some application on my Amiga 500. It had 1MB RAM only and when asm source code was over 150 kB it was no longer possible compile it while keeping my editor running on a background.
FrexxEd (which I'm in theory working - at significantly slower than snails pace - on upgrading; I've actually committed stuff to the repository this year, honest) actually has an ingenious way to conserve RAM there - something you'd only see on a machine like the Amiga, largely because it itsn't worth the hassle any more in the day of multi-GB RAM machines:
Export the buffers as a filesystem handler.
You can mount FrexxEd: and dir it to list the files that are currently open in the editor, and run whatever applications you want on them without wasting memory on additional buffers.
It's elegant in a way, but people without experience with a machine like the Amiga takes one look at it and goes "wha?!?!? Why don't you just save it to a temporary file". Then I have to explain how that might have meant having to switch floppies and stuff
