You would think so, yes. But to my surprise, my well over 60 Containers so far consume less than 7 GB of RAM, according to htop. Also, of course Containers can network and share services. For external access for example I run only one instance of traefik. Or one COTURN for Nextcloud and Synapse.
I run Nextcloud for many, many years. I hosted it for a very long time at Hetzners second lowest tier of Webspace they rent. It was not very fast there (you get what you pay for), but fast enough for our need here. Later I moved it to an Azure VM and after that to my Homeserver where it runs blazingly fast, especially since the last updates they pushed out.
In all that time I never reinstalled. I just upgraded to the newer versions when they were out. The only times I had problems upgrading was when I was hosting at the cheap Webspace instance at Hetzner and an upgrade process took longer than the PHP timeout my very cheap hosting instance provided. So it was never a fault of Nextcloud, but just that I hosted it on basically the cheapest hosting plan I could find.
We use it for file sharing, calendar + contacts (+ Sync with DAVx), Notes and of course Talk. For talk to make full use of Voice + Video calls, you should have a TURN Server, but if you do not use that (if you just text) it was running great even on the Webspace instance at Hetzner.
We are very happy in our family that it exists, that it is free and that it serves us well since many years.