1. If a game engine is coded to make use of as much available RAM as possible, according to some equation such as "use 60% of available RAM no matter what" then in theory it could simply spend too much time loading data into RAM, and if poorly coded could actually hurt performance. Obviously it would have to involve poor coding.
2. When a game is using 10GB, it is very likely that most of that memory will not ever be used, it will end up being flushed out by new data before being used. Games are designed to be able to run on much lower specs. So when the game sees that much memory, it is jsut goign to fill it with what amounts to junk. Sometimes it helps, like when you are walking back and forth between to separate "zones" that would otherwise have to be loaded each time on a lesser machine.
3. I went from a mildly overclocked lynnfield i5 to a 4.5GHz G3258. In my case the performance is much better, with some obvious multithreading caveats. But I gained 1.5GHz. I would not have made that move had my lynnfield been running at 4GHz. It used to run at 3.8, when I first got it, and it was fine. But at 3.2GHz it just wasnt enough.