"2. Push all your application logic into Postgres functions and procedures" Why are functions and procedures (an abstraction layer at db layer) considered harmful to performance when the same abstraction layer will be required at the application layer (introducing out of process overhead and possibly network traffic)? I don't agree with this advice. (Or I don't understand it.)
Author seems to be arguing against long functions/procedures. But if you move that to the client, presumably with ORM support - you're going to be executing more or less the same sequence of SQL queries and commands. Only difference is that when doing it on client you will have a lot of latency.
Yes, you can cache some data in between those commands to avoid same multiple queries, but if you use temp tables to do so, they will use memory only if it is available, otherwise you are limited with the actual storage size.
Only time I had memory issues with PostgreSQL when I used too much data in arrays and json's. Those are memory only variables. For example, I'd return a huge json to client and I'd run out of memory on PostgreSQL. I started streaming row by row and problem solved.