I am glad NI still says it is an issue. I was looking at the LV 2012 Known Issues list and saw the CAR was not there. Was worried NI had dismissed it as not being important.
I'm actually glad I revisted this today, because the same project needs an update and I forgot I modified DB toolkit VIs to get the memory down.
Even if NI changes the way the DB Toolkit accesses the DB, if they continue to pass data out as variants (or use variants anywhere along in the process), this problem will never go away.