Technically, even just 64k of ram would make it easier. I remember seeing 512k sram chips, and they weren't really any more expensive than 256k sram chips. For a few dollars more, why not double it? Anyone can use it for homebrew too.
The problem is that new code needs to be written into areas of the game. But you can't just write this new code anywhere, because things aren't just replaceable/moveable like that. Not in a banked memory typed system like this. The second thing is, what if there's not enough free room, or worst - no free room at some later point in the game (this has happened to me).
A CD game only expects so much ram to be there, and only in a certain area. CD 2.0 games don't expect or use SCD 192k of ram, SCD games don't expect or use AC 2megabyte of ram, etc. So the expanded ram is essentially 'protected' from game use. This makes it ideal for hacking purposes. Not just replacement code, but also replacement print fonts as well. You could even load in an alt system card bank #0 to MPR #7 (which is always fixed for CD game setups) and replace bios calls directly like that (which would map in your own routines sitting in expanded ram). It just makes things sooo much cleaner, easier, and faster for hacking.