Indeed, the improvements are very exciting and welcome. With devices such as the Lumia 1020, 1520, ICON, etc., all running on 2GB of RAM: I don't think I'll ever have to wait for an app to resume again (rocking a 1020 here ^_^).
However, just to clear some misconceptions I've read here:
1) Microsoft will NOT be removing the memory limit from apps. All apps are still limited to how much memory they can request from the OS, this isn't Android, folks. Now, I'm not sure if they're changing the limits in Windows Phone 8.1, but the limits will exist nonetheless, as they always have, based how much RAM a device has.
The difference is that before, in Windows Phone 8: an app would be given an allotment of memory to use, and be stuck with that allotment (I.E: 150MB on 512MB devices). The problem was, many apps only require as little as 30 to 50MB to run, yet they were still being given 150MB allotments (again, using a 512MB device as an example). The end result is, apps were being given far higher memory allotments than necessary, resulting in apps being tombstoned when it wasn't necessary, and making resume times take longer.
In Windows Phone 8.1, it is being addressed where the OS can dynamically detect how much memory an app is ACTUALLY using on average when running, and give it a more proper memory allotment. The best part is, since this is dynamic: should the app suddenly require more memory, the OS will be happy to oblige and give it the memory it needs (by tombstoning other open apps, if need be). So apps are still limited in how much memory they can request, but apps will no longer be requesting higher memory allotments than they actually need, which results in less tombstoning and therefore: a faster, more seamless experience.
Microsoft was clever and makes Windows Phone 8.1 do this automatically, so it won't be necessary for developers to do anything special to take advance of this more advanced memory system. Works right out of the box.
2) Secondly, this does NOT necessarily mean that 1GB apps will suddenly make a mad dash to 512MB devices. Will some now be more easy to optimize and port for lower memory devices? Indeed, but it still will not magically apply to all 1GB devices.
Remember: apps are still limited in how much memory they can request, depending on how much memory is on the device (I unfortunately cannot recall the numbers at this time/ Furthermore, I don't know if Microsoft is changing memory allocation limits in WP8.1). So should 1GB apps and games require more memory than is allowed to be allocated on 512MB devices, then a port simply isn't possible.
However, now that the OS is more dynamic in memory allocation, it is indeed possible could bump up the limits just a smidge, giving games just the extra bit of memory they need to function.
Remember: this doesn't mean it will happen, and it partially depends on Microsoft bumping up the limits (doesn't matter if all 512MB of RAM are [somehow, considering RAM is required to just have the OS function, but I digress] free if a games that requires, say, 400MB to run, if it's limited to allowing being able to use 150MB of memory). Still, this does lay a foundation for the potential of things being much easier for game makers to port to lower memory devices.