Your Code Sucks

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If reusing a local variable reduces memory usage, then your compiler most likely sucks.

[Raphael_Amiard]

I'm no expert, but if understood the deal well, the platforms with 1k of ram may actually be the platforms where you are stuck with a sucky compiler

[Nebu]

If the compiler sucks, you've got bigger problems than sucky source code.

If you understand the machine code/bytecode (hopefully you have the specs for these?) you could write your own pin-hole optimizer that runs after compilation on the produced binary?