In periods of low use, the OS may choose to swap most of the RAM to disk and switch it off to save energy.
However enabling and disabling RAM chips and rebooting the laptop, like a low-power toggle, would be possible.
I would like to see some hard facts instead of everyone simply quoting what a marketing person from Apple had to say.
IMHO, it's just that they didn't really didn't want to go through the trouble - the % of their target users requiring 16GB+ isn't that large.
For whatever reason, Skylake doesn't support LPDDR4. And the Kaby Lake refresh isn't going to include chips suitable for the MBPs, but even if it did they also won't support LPDDR4.
Apple went with LPDDR3 which those chipsets do support to increase battery life. I would have rather they'd gone the other way.