They mention that this helps cure some issues with regards to resource sharing / memory usage, etc. But does each VM still have a static allocation of memory?

One of the main benefits I have now is that if I run a number of containers that all take various amounts of memory, I can just throw them on and they share memory amongst each other quite efficiently. If I have to make a static allocation of memory for a VM, I'll typically choose a conservative memory number, and usually under-utilize the machine, wasting a lot of memory per-instance. Not so bad since I chose per-pod, but still an issue.

As it happens, this same issue is why I'm leaning towards lightweight native applications these days instead of an aggressive greedy virtual machine that grabs a bunch of heap. Golang/Rust in particular.