DrumAllDay
You can't exceed the 64 MB loaded any given time, so as you jump from title to title, resources from previous titles may be removed in order to make room for new resources. Within a title, resource priority is used to determine which resources get removed first (or last as the case may be).
What I believe Peter meant by making your playlist application "bigger" than 64 MB is that you could potentially store resources that the playlist application needs across several titles as title resources since they have lower priority than playlist application resources, but still higher priority than title application resources.
so, for instance, lets say you have a playlist application that is 50 MB
and in title A you have 14 MB of title resources that are only needed by the playlist app in title A
and in title B you have 14 MB of title resources than are only needed by the playlist app in title B
When you jump from title A to title B, the title A resources are removed from the filecache in order to make room for the title resources from title B. So, technically, your playlist uses 82 MB of filecache, but never more than 64 and one time.
I believe that in the current implementation of the simulator and the Toshiba player, this works. However, I'm not positive on whether or not referencing these title resources in the playlist application is a spec violation as they are not referenced in the playlist application tag or in the playlist application manifest.