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Actually, your memory usage dropped by about 15-25 MB. Which seems on par with activating OC. My theory is FFXI poorly uses the IDirect3DQuery9 command for calculating meshes to cull. When you move the camera within the game, it has to recalculate all of the meshes, identify the polygons that can be discarded, and render the scene. That recalculation adds a few milliseconds to the rendering of the scene, at which point the calculations complete and the benefits kick in. So what you're seeing is this backface culling engine at work sacrificing 8-10ms to recalculate all faces of every model's mesh that are not visible on your screen. Yes, this includes characters and objects that were not visible on the screen since the last time the algorithm was used.
Yep, i can confirm this behavior having seen the world and pc/npcs vanish and pop-in simply by moving in and out from behind someones chocobo in first person view.