No. You are wrong again. RAM and VRAM in that equation do not denote the installed memory on the computer.
I know they don't. It was
you who insisted they did:
16 GB = RAM + VRAM + other_hardware_reserved_memory
That is wrong. 16GB = physical addresses up to 16GB, as reported by the board. VRAM is, like with 32-bit, taken off the other end of the address space, which is way up at 16TB, or higher, for most current implementations (along with other device mappings). The lowest 1MB will remain effectively unusable due to BIOS/real-mode compatibility. Why some boards, like mine, take a wee bit more, I have no idea (I'm not exactly losing sleep over that 1MB, either, though).
The caveat of less RAM seen or usable has to do with early motherboards, before 64-bit became the norm. To use anything over 4GB before x86-64, you needed to use PAE. Now, PAE generally sucked, as a way to extend addressable RAM (overlays are bad, mmmkay?). But, with PAE, you still had mappings taken off the top of the 4GB space, so there was still some missing RAM, usually. Well, x86-64 (also, NX bit support in 32-bit) extends PAE page tables (one of the traditional ugly-but-effective means of x86 implementing backwards-compatibility, and minimizing additional CPU complexity for new features).
Many mobos would keep the device mappings the way they were, leaving a hole in the RAM (worse, some would only allow 4GB less mapped space, even in 64-bit!). Some had remap options, some not. Enthusiast mobos pretty much always automatically handled it, of course, and now, pretty every mobo does. However, many Vista users were stuck with those broken mobos, and some Win 7 upgraders, as well.
The apparent reduction in memory will be the same regardless of 64-bit OS (it's not a Windows-specific issue), and will affect any users with those boards, and enough RAM to reach the address space limits in 32-bit mode.
That's correct, but it doesn't mean what you've been saying it means. For x86-64 support, Windows
must be able to use a 16TB address space (44 bits) (edit: they can make use of less, like Linux did at first, but they still have to work with the same total number of low bits). The more, the better, but that is the minimum, as used by 1st-gen Opterons (P.S. it appears MS is sticking to 16TB internally, for now). Device mappings are in the opposite end of the address space from your OS and applications (the middle is unusable by any current implementation).
The limit of 16GB is strictly an artificial limit on physical system RAM usable by Windows Home, and does not affect the usable address space. OEMs get better deals on the home OS versions, but not so much the Pro and up versions (IE, MS makes more money per unit, and per site, on those licenses). Today, I think it's outlived its usefulness, but it's one of those things MS has done for ages (Vista Home Basic had an 8GB limit, FI), we've become used to it, and most who might care get Pro anyway, so very few users actually get affected.