1- Where the flat file can be usefull:
Flat file can be faster than a database, but in very specific applications.
They are faster if the data is read from start to finish without any search or write.
If the data dont fit in memory and need to be read fully to get the job done, It 'can' be faster than a database. Also if there is lot more write than read, flat file also shine, most default databases setups will need to make the read queries wait for the write to finish in order maintain indexes and foreign keys. Making the write queries usually slower than simple reads.
TD/LR vesion:
Use flat files for jobs based system(Aka, simple logs parsing), not for web searches queries.
2- Flat files pit falls:
If your going with a flat file, you will need to synchronize your scripts when the file change using custom lock mechanism. Which can lead to slowdown, corruption up to dead lock if you have a bug.
3- Ram based Database ?
Most databases have in memory cache for query results, search indexes, making them very hard to beat with a flat file. Because they cache in memory, making it run entirely from memory is most of the time ineffective and dangerous. Better to properly tune the database configuration.
If your looking to optimize performance using ram, I would first look at running your php scrips, html pages, and small images from a ram drive. Where the cache mechanism is more likely to be crude and hit the hard drive systematically for non changing static data.
Better result can be reach with a load balancer, clustering with a back plane connections up to ram based SAN array. But that's a whole other topic.
5- can multiple scripts connect to the same DB simultaneously?
Yes, its called connection pooling. In php (client side) its the function to open a connection its mysql-pconnect(http://php.net/manual/en/function.mysql-pconnect.php).
You can configure the maximum open connection in php.ini I think. Similar setting on mysql server side define the maximum of concurrent client connections in /etc/mysql/my.cnf.
You must do this in order to take advantage of parrallel processessing of the cpu and avoid php script to wait the query of each other finish. It greatly increase performance under heavy load.
There is also one connection pool/thread pool in Apache configuration for regular web clients. See httpd.conf.
Sorry for the wall of text, was bored.
Louis.