There was a kernel patch for this chipset back then, which treated all memory above the lower 64MB as a RAM disk, which could then be used as swap space.
This prioritized the faster portion of RAM while still having very fast swapping.
Intel being Intel, back then and now.
There are workarounds, of course. For instance, the A1208 expansion has a jumper that limits added memory from 8MB to 4MB explicitly so that PCMCIA can be used.
So yes, even when your cpu could address similar size of ram, possible it don't have enough page cache for your application.
It was only a few weeks ago that I found out the original BeBOX computers would switch off L2 cache when running in dual CPU mode. It was just a limitation of the memory controller. Again, the thinking of, if you need the extra compute over memory bus it would be a worth while trade off.
Besides web sources, logic dictates this as well: Since dual-cpu was its selling point, it wouldn't make sense to ship a disabled L2 implementaton on the mobo at extra cost. There was no single-cpu model.
We traded the 'Mo RAM' for 'Mo Layers,' and in the process, we lost the ability to reason about what the hardware is actually doing. Sanglard’s breakdowns are always a sobering cold shower for those of us pampered by modern GC and JITs
It looks like Anandtech listed 128Mb for $300 (not inflation adjusted) in 1997. It fell to $150 in 1998 and by 1999 you could buy it for $100.
So 512Mb RAM by the end of 1999 for ~$200 was plausible.
Imagine young would-become engineers at the time finding that adding that second stick to their laptop did in fact, not make their systems magically faster.