So is this coin still doing the weird-ass CAPP alternative coin or will main CAP chain remain alive and active?
Both, actually. Tranz is forking the coin to repay Cryptopia and put in the fixes to make it so it doesn't happen again.
Would be great if there was a fix for the bloating the wallet had as far as RAM. I see the new CAPP wallet is tiny, but
maybe because it has no coins and is not staking?
Memory is based on how many blocks it has to store. Each transaction is x number of kb... that equates to a large 2GB+ memory hog if there's a large blockchain that must all be loaded in order to perform proper operation. Since it's a PoS coin, that's what needs to happen... only way to correct it would be to restart the chain with a single entry paying out all current wallets with current balances and going forward from there... downside on that is the weight would go away.