High memory usage with savepoints & encoding differences

I'm running into a situation where postmaster is consuming significantly
more memory than I would expect. This only seems to happen when I
combine savepoints with differences between client and database
encoding. I originally discovered this while running some Java code
which uses JDBC (the postgres JDBC driver always sets client_encoding to
UNICODE) to connect to a latin1 encoded database, but it's reproducible
with psql as well.

Here's a script which generates sql that triggers the unexpected
behavior:

dadams@postgres:/tmp > cat pg_savepoint.bash
#!/bin/bash

echo "SET client_encoding TO $1;"
echo "BEGIN WORK;"
for ((i=0; i<$2; i++))
do
  echo "SAVEPOINT x;"
  echo "RELEASE SAVEPOINT x;"
done

echo "COMMIT WORK;"

Given these databases:

dadams@postgres:/tmp > psql -l
         List of databases
    Name     |  Owner   | Encoding
-------------+----------+----------
 postgres    | postgres | UTF8
 template0   | postgres | UTF8
 template1   | postgres | UTF8
 test_latin1 | dadams   | LATIN1
 test_utf8   | dadams   | UTF8
(5 rows)

All memory usages are those reported by top as VIRT.

If I run "./pg_savepoint.bash UNICODE 100000 | psql -q test_utf8" or
"./pg_savepoint.bash latin1 100000 | psql -q test_latin1", the memory
usage of postmaster remains relatively constant at about 50mb.

But when I run "./pg_savepoint.bash UNICODE 100000 | psql -q
test_latin1" or "./pg_savepoint.bash latin1 100000 | psql -q test_utf8",
the postmaster quickly consumes hundreds of mbs, topping out at
800-900mb.

If I omit the SAVEPOINT/RELEASE SAVEPOINT statements and, instead, do
repeated INSERTs into a temporary table, the memory usage remains
reasonable (~50mb), regardless of differences between client and
database encoding.

This doesn't seem to happen in all cases of mixed encodings. Mixing
win1252 and latin1 seems to be fine. It seems that only UNICODE/UTF8 <->
single byte charsets triggers this, although I wasn't exhaustive in my
testing.

I've tested this with 8.3.7 and 8.3.5, running on CentOS 5.2 and 4
update 6, respectively. Postgres was installed from the official RPMs
downloaded from http://www.postgresql.org/ftp/binary/. I'm seeing the
same behavior on enterprisedb's 8.3.5 One-click installer Postgres for
Windows (although, using CP1252 instead of LATIN1).

postgresql.conf is how initdb created it.

Is this expected behavior? Or am I missing something? This seems really
weird.

thanks,
dylan