You mentioned in the blog article that it's doing listwatch. List Watch registers with Kubernetes API that get a list of all objects AND get a notification when anything in object you have registered with changes. A bunch of Vector Pods saying "Hey, send me a notification when anything with namespaces changes" and
poof goes your Memory keeping track of who needs to know what.
At this point, I wonder if instead of relying on daemonsets, you just gave every namespace a vector instance that was responsible for that namespace and pods within. ElasticSearch or whatever you pipe logging data to might not be happy with all those TCP connections.
Just my SRE brain thoughts.