Python: Memory usage and optimization when modifying lists?

Without knowing the specifics of what you're doing with this list, it's hard to know exactly what would be best in this case. If your processing stage depends on the current index of the list element, this won't work, but if not, it appears you've left off the most Pythonic (and in many ways, easiest) approach: generators.

From your description it sounds like a deque ("deck") would be exactly what you are looking for.

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