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I don't know if they have some kind of magically genius caching system but the chip only has 512kb of SRAM and a little cache and the rest has to be managed by flash memory which is like 30+ times slower so I dunno about the performance of that.

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The boards using this chip typically have 8 MB of PSRAM from what I've seen.

yeah but the PSRAM is going to cause a delay

it's not that bad. At 120MHz, the PSRAM still gets only around 90-100ns per word in the worst case. If you use some SRAM for caching and do bulk transfers, you can get that down quite a bit. Also you can easily overclock the PSRAM to 133MHt (10 decrease in latency) with no problem, maybe even (much?) more.

normal dynamic RAM back then was at 60-70 ns so it's really not that bad. And YT videos show that it also works fine in practice

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