They've made it very clear that they're RAM limited (in particular with respect to capacity), so why not just have the processor compress/decompress memcache operations back and forth with a highly efficient and relatively low compression algorithm?
It's not even like you couldn't tune the algorithm to detect duplicate/similar data and create atomic globs of data that represent multiple informational objects.
It seems like their big cost is putting together machines with tons of RAM for their memcache clusters, so why not bring that cost down?