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Let's back up and try for a simpler explaniation
You have four things internally in your 6700
Radio Firmware Flash Rom - nothing you can do here
OS Firmware Flash Rom - 64MB
Extended Flash Rom - 10MB
Internal Ram - 64MB
Now, you can 'cook your own rom' - which means you can pre-install applications you would normally install into internal RAM or your Card, or if you unlock it, your Extended ROM, into the OS ROM. That's good for several reasons
(1) - it is always available, just like if you installed it into RAM
(2) - it does not need to be re-installed on a COLD BOOT
and
(3) - it does not use any internal RAM when not running, as an app would if installed in internal RAM *
When people speak of freeing up RAM because they moved something into the OS ROM, it's because of (3) - there are lots of apps and stuff like ringers and themes that really have to be internal (RAM or ROM) to work well, so we're forced to install them into RAM - one big one is .NET 2.0 - you can run that off a card, but it does not run well there, and even then takes a couple meg of internal RAM just to install.
As the poster above said, the downside of putting apps into ROM is you have to re-build and re-flash your ROM if you need to update the app to a new version.
* and I am not sure if the 6700 can do execute in place for ROM-based executables... if it does, then OS-ROM based stuff will also not use as much RAM even when running. But I don't think that's the case with the 6700.
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