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Doesn't the camera have it's own framebuffer that the MCU can stream? I don't see why the MCU would have to hold the whole frame in memory.

The library comes with ESP32 use DMA for image stream. Don't think you can workaround that, unless you write your own driver

At least with ESP32-CAM api, the instruction to capture an image returns a pointer to image data in psram.

I would imagine a Pi Zero is more efficient at converting that raw image data to some compressed file format too.

ESP23-P4 will support up to 32mb in PSRAM, MIPI, and hardware h.264 encoding. It'll be a great chip for video.