Turbo Pascal wasn't written on a 286; it was written for CP/M, where I think it required 48KiB of RAM. A "fairly early version of Turbo Pascal for DOS" might have required 64KiB?
You can't really stream things onto a floppy disk (remember that early home computers and the IBM PC didn't have hard disks; they didn't become standard equipment until the late 80s). You have to write a whole sector at a time, which can take a second or two to seek the disk to the appropriate track; rotating the disk to the right sector takes a significant fraction of a second. Journaling your edits to a journal file was a feature that EDT on VAX/VMS had around that time, but there wasn't really a practical way to do that on a home computer.