The memory leak issues of firefox has been so bad for me that i only use firefox under windows and have instead switched to konqueror on linux.
I have pretty modern amd64 system with 1gig of ram, but still it manages to eat up all my ram after a day or so, which causes the system to start swapping and this will cause the whole OS to slow down to a crawl. The only fix is to completly quit firefox and start it again, which is really no solution for me. I believe tha this cache feature is just a small part of the problem.
I have noticed this problem using older versions of firefox on different systems as well, but it has gotten more noticable with newer releases.
Also moz team tends to blame the problem on extensions and such, but i run zero extension on my firefox 1.5.1 and the problem is still there and so do alot of other people claim as well.