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*cough* iAXP 432, B5000 *cough* Segments are better than paging, if implemented right, paging is easier to implement, though more expensive, you also need a good compiler, check out google native client.
Yes, draining the economy, literally exporting cash, even if it is earned fair and square, costs, and needs to be covered, you aren't running a charity (I'm Bulgarian).
Most content (except games) rarely is more than 60fps. What he is talking about is one of the possible interpolation algorithms generating intermediate frames.