I'm thinking that 'System.OutOfMemoryException' means you're out of the memory you're allowed, rather than the server itself is out of memory. In Powershell the default seems to be 1GB so it shouldn't be too detrimental to the server.

Presumably even if you set this to something higher than the total system memory then Windows server starts applying it's own hard limits.

Even on a low-memory server (4GB or so) then I think the worst knock-on effect for SQL server would be a reduced buffer pool size.

Of course, this is mostly speculation 🙂