I do my video transcoding for devices around the house on an on LGA775 machine. It's not quick, but I don't think it's RAM limited, it's currently spent the last 20 hours transcoding about three hours worth of 1080p videos for the TV, but that's slow because the TV doesn't support h264 (high) video format and needs converting down to plain h264. When I transcode stuff down to the resolution and framerate of my laptop, but leave the video format otherwise as is, it's much closer to real time, and this is an old desktop machine we're talking about here with only 4GB RAM and no swap. It came with 2GB RAM and I did max it out to 4 but it hasn't sped up video transcoding appreciably. A modern rPi probably has faster in-built h264 and 265 decoding, which should help.
You probably need more power for live video editing, but using ffmpeg I can crop, rescale, fade do pretty much anything you can do in a live video editor, I just need to work out what needs doing beforehand and set it going. More RAM might help for live video, I'm not sure, but sooner or later you can hold all of the video frames in ram that you need to do the work, and more RAM won't help. But then again I'm thinking about 1080p video but things are slowly going 4k, which I'd expect to need more ram.