What doesn't make sense? You seem to understand what I said. What Steve Jobs showed at the Shareholders meeting is not what was sold to customers. Period. In fact the 512k wasn't even available until 9 months later. I'm not bashing 128k, if anything I'm justifying why the Mac in the auction that started this thread would have been upgraded in the first place.
You're correct. I was 5 in 1984. My first Mac was a IIsi, which I received in January 1995, which paled in comparison to the new PowerMacs that Apple was selling... Which is actually similar to your PM 6500/MacBook comparison. The oldest Mac I currently own is a 512ke, so I have a pretty good idea what you can and cannot do with a 128k.