The ZFS driver will release memory if the kernel requests it. The only integration level issue is that the free command does not show ARC as a buffer/cache, so it misrepresents reality, but as far as I know, this is an issue with caches used by various filesystems (e.g. extent caches). It is only obvious in the case of ZFS because the ARC can be so large. That is a feature, not a bug, since unused memory is wasted memory.
You were downvoted but I have also run into situations where it didn’t and caused a cascade of processes getting out of memory errors. In both instances I was pushing the server beyond what was reasonable.
