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Sure, but how many applications are you running? Let's say you have 20 applications running at 200MB each that's 4GB (50%) of your available memory with an extra 4GB for spiky workloads (if you have 16GB it drops to 25% available memory usage).A bunch. Most of them in the background. A lot of them in browser tabs. Good chunk of them use way more than 200MB.
Some applications a typical person may be running that will each use more than 200MB of RAM: garbage audio "control panel" that came with the driver, garbage video card "control panel" that came with the driver, Skype, Steam/Origin/GOG/Ubisoft Connect/EA whatsthename, possibly all of them at once. Facebook (in browser). Messenger (in browser). GMail (in browser). Couple of news articles (in browser). That's all before starting to look at whatever the user currently needs to run to accomplish their goals.
A different example: two years ago, I had a desktop with 8GB of RAM, on which I worked on a software project (remote job). I had it running Linux and trimmed of most of RAM-consuming things, and still I could only run three things - Emacs, our backend, and a web browser with our frontend, Slack and some HN threads. Anything above that would exhaust available RAM. Slack Desktop was out of the question. That's how I discovered Ripcord - turns out you can write a perfectly functional and ergonomic Slack client with close to zero memory footprint, if you give a shit.
Of course I upgraded my machine as soon as I saved up some spare cash, and I sport 32 GB of RAM. And guess what, I've managed to exhaust that too! Thanks to software having memory leaks. The difference between 32GB and 8GB is that I can run some software for 8 hours vs. just one, before having to restart it.
I could go on, but I'll also end with this point: 4GB of RAM is still frequently seen in cheap laptops sold today, and of course common in laptops sold few years ago. This is the kind of hardware a typical non-tech person is going to have. Software bloat directly limits their ability to multitask on their machines.
FWIW, I'm not dismissing VSCode because it uses 200MB more of RAM than it should. It's a pretty lean piece of software for the features it sports. But most modern software is not like that.