Isn't that what memory pools, introduced with OS 2.0 is for? Small allocations, pooled into puddles? Unfortunately, there are still programs, that don't use them, way past the OS 2.0 release date...
Bleugh, memory pools are disgusting! You have to manually manage them, rather than having it automatically allocate/choose automatically sized 'pools' for you. i.e. mine simply replaced the existing AllocMem() routines, like yours does (but only for my program) - no hassle.
If the OS4 allocator has internal fragmentation and if it's really up to 12,5%, it sucks.
Well, that is a lot better than all previous memory allocators, the fragmentation can never exceed 12.5%, and it is apparently used by Linux & other modern OSes.
P.S. Yes, I will look at the TLSF papers when I have time (already downloaded). Pity you didn't link to the paper, as it took a while to find (most places wanted payment!).