It's not a false rumor and has been proven here many times. Thirtybird has explained it better than I can a few times in this thread, but the more cards you have, the more RAM you need to run it with a low lookup gap. My lack of system RAM only allows me to get about 80% out of each 290x I have because I can't run them with the higher lookup gap without one card refusing to start.
Also, you assume all new miners are using low end gear. What if a new miner comes in like me with 4x 290x cards and only 8 GB system RAM and has the same issues I do? I was already at a 25% profitability disadvantage against scrypt coins because of this, and that was before the orphan problem. It does work out good for CPU miners and 750 Ti miners, but it doesn't hold true for everyone.
That will be true with ultracoin miner. But yacminer, with its fine intensity tweaking should give you the same results on whatever lookup gap you mine.
This right here is why I've advocated people using the "buffer-size" setting instead of thread-concurrency - it confuses what people think the problem may be. They both will accomplish the same things - allocating the OpenCL buffer for the card - but thread-concurrency is factored on lookup-gap, which gets fiddly when trying to test config changes. buffer-size just says "I'm allocating this much memory" and the rest of the settings work with that to do their hashing. So, it's not a lookup-gap problem that's preventing you from maxxing out the cards.
System RAM can be important, depending on your config. If you've only got 4GB of system memory, you're going to be hurting yourself if you try to work with _any_ cards that have 3GB or 4GB of VRAM. Is it possible, absolutely. Is it easy, hell no. I've examined Beave's setup quite some time ago - he's banged it out pretty good - high effeciency with low cost and decent hashpower. He's gone with a large number of 2GB cards per system, and absolutely can run 6 x 2GB cards on just 4 GB of system RAM. I know it can work, and I personally run a 4 x 2GB system on Windows on just 4GB RAM. My other mining setup uses 4GB cards, and needed 8GB of system ram to go beyond 2 cards.
Now, with that said, you've got R9 290x's with (guessing) 4 GB of GPU memory. It is absolutely quite possible that 8GB is not enough to allocate 3.6GB per card on just 8 GB of system memory. I can allocate 3GB per card, but I don't have as many shaders on my R7 240's to keep busy as you do so even at N=14 I don't need to go higher. The efficiency of your card will suffer by trying to cram more work to those shaders as you crank up the lookup-gap. One nice thing is, so long as you can allocate as much memory as I can on your card (--buffer-size 3040), you can still get ~ 3KH/sec by running the same lookup-gap (2) and a reduced raw intensity (-R 1280). From there, any additional memory you can allocate will give you a higher -R to use. The key is to find out how high of a buffer-size you can allocate on each card before you have problems. On my system with 4 x 2GB cards and 4GB, I am allocating a buffer-size of 1753 for each card - any higher than that, and I will get cards fail to start up. This is also pushing the limits of what can be allocated per card anyway (from single card testing), so I'm happy to be there
Configuring miners for high end cards on high NFactor coins is hard. I don't think anyone can say it's not intimidating for new miners, or experienced miners alike. I've tried to put as much of my knowledge and findings out there as possible, but not everyone has the patience to read it all or the time to test a myriad of settings. I've got something in the testing fork of YACMiner that will make finding working settings much easer for new miners, but I've got some issues with timing and the multiple threads that I haven't had time to look into solving.