Pre allocation is generally the safe option in a embedded security critical environment where you must always handle the worst case scenario and you know all possible inputs. In a user interaction environment though it's usually better to over-sell so that the user can choose wheter he wants to create 1 million A's or 1 million B's, instead of having a pre-created pool of half a millon A and Bs each.

With pre allocation you usually also end up creating your own resource management within the pre allocated pool and then you are back to the resource management problem...