After reading through the mentioned thread over at the wowace forums and some more here that were linked to me (I had searched for "memory" and "allocation" on this forum, but had no results, or I'd have used an existing topic), and, as far as I'm able to tell, this very much looks like a problem on Blizzard's side.
As a few people pointed out, it appears as this problem happens when there is a lot of memory allocation going on very rapidly. People are reporting about this happening almost exclusively at times when a lot of garbage producing addon activity is going on.
Frequently mentioned culprits appear CowTip as mentioned by me, ArkInventory with many inventory changes (such as retrieving mas mail), Recount during raiding (which in heavy aoe fights can blow up memory usage temporarily extremely fast), Auctioneer during AH scans (memory intensive for fairly obvious reasons) etc.
Some people are also observing the same issue that I see - namely, reported addon memory usage growing rapidly and with somewhat extreme values while this memory usage is not attributed to any addon and does not get freed by GC.
I can't really judge if this is related, but it certainly sounds like something weird, so I'll quote two things here in case Slouken or other Blizzard folks do want to check if there's something b0rked on their end.
One is a post in the above linked wowace thread by Xinhuan:
Q u o t e:
It might be useful to know that the following script can also cause a Block too big error, but it won't crash WoW. Tables seem to have a maximum limit of somewhere between 8 MB and 16 MB in Lua in WoW.
Code:
/run i = 0; abc = {}; while true do i = i + 1; abc[i] = i; end
/dump i
That will print the value of i when the block too big occurs, and this number should be 2^19 + 1. This is just before array tables are doubled in size from 8 MB to 16 MB.
Code:
/run i = 0; abc = {}; while true do i = i + 1; abc[i*100] = i; end
would change the table to hash style, and the limit is lower, but still a power of 2. You can GC the table by running /run abc = nil after your experiment, your wow will not crash or anything.
This points to clues that the GetRegions() call somehow manipulates internal tables of frames and regions to return results, since the Block too big error is occurring inside it for many cases. When the call doesn't return, something in memory got corrupted and wow eventually crashes.
The hypothesis is that Cowtip is generating lots and lots of fontstrings and regions on GameTooltip and when it exceeds a certain limit, the error occurs.
and the other is an addon designed (and successful at it) to crash WoW in relation to this error:
http://www.wowinterface.com/downloads/info8741-TooMuchData.html
Also notable - one player reported this error triggered by Blizzard code (presumably in conjunction with other addons):
Q u o t e:
[2008/05/22 19:01:19-2830-x3]: memory allocation error: block too big:
<in C code>: in function `SetAttribute'
Interface\FrameXML\SecureStateDriver.lua:98: in function Interface\FrameXML\SecureStateDriver.lua:79>:
Okay, I'm done with my Wall Of Text. I hope this is helping drawing Blizzard's attention towards this issue.