I'm working on a system that allocates memory for IO cache to increase performance. Then, on detecting OOM, it takes some of it back, so that the business logic could proceed, even if that means less IO cache and slightly lower write performance.
I also worked with an embedded Java applications that attempted to manage OOM by forcing garbage collection, optionally releasing some of non-critical objects, like pre-fetched or cached data.
The main problems with OOM handling are:
1) being able to re-try in the place where it happened or being able to roll back and re-try from a higher point. Most contemporary programs rely too much on the language to throw and don't really manage where they end up and how to re-try the operation. Usually the context of the operation will be lost, if it wasn't designed to be preserved
2) being able to actually release some memory. This means a kind of resource manager that knows what objects are critical and what are not, and the system be able to re-request the released objects when and if they later become critical
Another important issue is to be able to roll back without triggering yet another OOM situation. This is something that is hard to control in higher level languages.
Also, the underlying OS must behave predictably with regard to OOM. Linux, for example, will not, if memory overcommit is enabled. Many swap-enabled systems will die sooner than reporting the OOM to the offending application.
And, there's the case when it is not your process that created the situation, so releasing memory does not help if the offending process continues to leak.
Because of all this, it's often the big and embedded systems that employ this techniques, for they have the control over OS and memory to enable them, and the discipline/motivation to implement them.