If you use it and stop using it, the OS cannot reclaim the pages, because it doesn't know that you've stopped. At best, it can offload the memory to disk, but this waste disk space, and also time for pointless writes.

This is true, whether it matters is context dependent. In an embedded program, this may be irrelevant since your program is the only thing running so there is no resource contention or need to swap. In multi-tenant, you could use arenas in an identical way as single static allocation and release the arena upon completion. I agree that allocating a huge amount of memory for a long running program on a multi-tenant os is a bad idea in general, but it could be ok if for example you are running a single application like a database on the server in which you are back to embedded programming only the embedding is a database on a beefy general purpose computer.