It would probably be OK if all programs have a simple, predictable sequence of malloc and free that they call in a loop, with similar-ish sizes each time.

It's extremely unpleasant to program something with just a few KB of RAM and not know exactly what memory goes where. However, a lot of IoT-related gadgets just gather a buffer of data from an ADC or something, average it and send it over some wireless protocol every 1 minute. The allocation pattern is predictable enough that you don't run into strange cornercases.

I see no reason why anyone would want to use this commercially, but for the enthusiast market (and maybe even for some rapid prototyping) this looks interesting enough.