Yes, unfortunately. I suspect it will get worse again in act 3 as the "stuff" in memory builds again.
And Yes Katarsi, the game keeps track of all the objects. Thats why when you leave an area and come back the stuff is still on the floor. The world is still burned/wet/acid/whatever.
I don't think the tracking of objects or memory usage itself is the issue because this works fine in single player. Theres a stark contrast between the switching in splitscreen. It's gotta be running a different segment of code somewhere.
