There is no downside to a server having more physical ram than you need. It is a nice problem to have because you can keep your entire database in memory. Allocate enough buffers to hold it all, right after startup initiate something that does table scans of the whole thing to ensure its all in memory quickly and you have an in memory db. Sweet.
There is a downside to allocating more ram to the database than the server has ( swapping / paging etc. ).