No it doesn't. It suspends them.
You're contradicting yourself so badly here
Switching between them is not unlike how it would work on your mobile phone
I.e. the xbo does the exact same thing as phones do, minimize/suspend apps that are not currently actively being used depending on the apps resource requirements in different states. Perfect example, multi-window support on galaxy SIII and 4. Is the xbo doing anything impressive in this regard? No, only 4 apps is kinda disappointing actually when you've got 3GB of ram dedicated to the OS(s)