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Proper OnUpdate usage is certainly acceptable. Using the second return from the OnUpdate handler to create a buffer is the way to do this.
Also, static memory usage does not matter. My system has 8GB of RAM. If an addon takes up even 5MB, it's merely a drop in the bucket.
I do prefer using Lua over XML, and encourage its usage for frame creation, but you don't need to bite the heads off of people who prefer it the other way. This is a game community - this is a hobby. If you want to help people learn, then fine. If you just want to yell at them, maybe this isn't the right place for you.
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