RAM shortage or competent programmer shortage?
Can't get a Linux box to idle (or even install) under 512M these days.
Can't find a web developer worth a shit who doesn't think he needs a Python backend application server to print "Hello, world" when you could do this with a static page served with something like OpenBSD with two-digit RAM requirements.
It's not the RAM that's changed; it's everyone around the RAM.
A coddled generation who were taught that AWS is the Internet and live in abstractions certainly hasn't helped.
You definitely can use Linux with few simple servers with 128 MB RAM.
Install can be tricky indeed, but if you have installed system, it's easier.
My NixOS SSH jump host server here idles at 234 MB of which 64 MB is systemd-journald (which I assume can be reduced with some settings of how much to keep in RAM).