Godaddy hosts databases on different multiple dedicated servers. Some servers run only mysql. They host emails on different dedicated servers, http is on a different server. This method makes a huge difference on RAM and CPU limits. I am not sure but I think the resources given or seen on user cpanels are only for the http server. Emails, http and mysql are hosted by different servers in Godaddy. They have migrated to cpanel and now they are able to limit RAM. I still use their old control panel as I paid in advance for many years before they start to offer cpanel. They were allowing 50 or 150 connections on mysql, 600 connections on http (apache) for the biggest shared hosting package. RAM was not limited and sold separately.
For a normal dedicated server or vps, at least 3 GB RAM is needed to run the OS, http, database, email, php and several caching and protection mechanisms. You run everything on a single computer if you choose vps or dedicated hosting instead of Godaddy shared packages. This is similar to your desktop pc or laptop. What is the RAM of your computer? Minimum 3 GB right? Dedicated servers or vps systems are almost the same. But Godaddy hosting is different as your sites are hosted by more than 1 computer/server. Think if you own 3 computers, one compter runs your browser, one of them runs your keyboard, one of them runs your network-antivirus. You could need 1 GB RAM on each computer instead of a single computer with 3 GB RAM. Apache can handle very high traffic with only 1 GB RAM. Of course you need to use latest version of everything to reduce your RAM needs. However you can't update apache, OS, php and other things in a shared hosting. Even 512mb RAM is more than enough for most websites if Godaddy gives the RAM for only apache. Usually websites are not limited by RAM. Disk speed and CPU are more critical in my opinion. Find SSD hosting if you have high traffic sites. SSD makes a big difference. Because when RAM is not enough, OS starts to write on swap partition of the disk. SSD accesses the files almost instantly.