alt Hacker NewsMaybe (I think it's possible in protected mode), but it still has an allocation problem, imagine there are programs A, B, C in the memory. Later, A and C are unloaded, leaving 2 free holes, totaling in 2MB. Now you want to load a 2MB program, but there is no unfragmented 2MB free block. The only solution I see, is to shift some loaded programs, which might be slow and even risky. Paging makes this problem much easier. Also, paging makes permissions and memory sharing more granular.
There is no such thing as a "2MB program".... all you have is a program composed of <=64K segments, which are easy enough to fit into the hole.
If you do need something approaching a 2MB block of memory, you don't need a contiguous range of memory, what you need is a contiguous range of selectors, which is a different (and probably easier) problem to solve.