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If you plan to take exams and/or work with novices, I'd say it's worth it. It's not easy to jail each process and give it limited resources. If X students write an infinite loop, you server will collapse. The more threads and RAM you have, the greater X can get.

If you divide the available RAM into the total number of students, you're wasting resources, it's better to estimate the number of students that can write an infinite loop that appends to a list, and not hit interrupt and/or restart on time.

In my experience, the probability of a student blowing the server is higher on a exam than on a regular class, and it's higher in combinatorics or number theory, average on linear algebra, lower on calculus (unless the exercise involves symbolic integration of non-trivial functions).