I don't make the decisions around here, but I'm going to suggest you might be looking at a chicken-and-egg scenario here. In order to qualify for the upgraded space, you need to have a working, ToS-compliant website that already uses more than 50% of your initial allotment (so, over 256MB). If you can't make something work with less than 2GB (it was 1GB last time you posted, but, sure, okay, whatever), then you're not going to qualify for the upgrade to make it work.
[EDIT: ninja'd by Anna.]