I don't think jittery scrolling is a memory issue. It's a programming issue.
The problem with that assumption is that it's too general from issues that are very specific.
There are many ways to do dynamic tile animation. Some have emphasis on memory restrictions, others on processing cycles required, and other still on bandwidth to vram transfer. It really depends on the effect and the cost of doing it via dynamic tiles. Dynamic tiles introduce other limitations in how the display is arranged.
If SCD memory is used, there are some methods to really decrease the choppiness of the scrolling in Ys 3. Hell - I'd even dumb the res down from 342x240 to 256x240 to further help it.
A little bit of info: Lords of Thunder uses dynamic tiles to simulate the lines scrolls in the stages, not hsync scrolls as you would normally think.