It's best to think of it as an entire spectrum from "statically allocate everything with compile time parameters" to "directly call the system allocator for every new bit of memory". It's just a helpful way to separate the concerns of memory allocation from memory usage.

What this article is talking about isn't all the way at the other end (compile time allocation), but has the additional freedom that you can decide allocation size based on runtime parameters. That frees the rest of the application from needing to worry about managing memory allocations.

We can imagine taking another step and only allocating at the start of a connection/request, so the rest of the server code doesn't need to deal with managing memory everywhere. This is more popularly known as region allocation. If you've ever worked with Apache or Nginx, this is what they do ("pools").

So on and so forth down into the leaf functions of your application. Your allocator is already doing this internally to help you out, but it doesn't have any knowledge of what your code looks like to optimize its patterns. Your application's performance (and maintainability) will usually benefit from doing it yourself, as much as you reasonably can.