One of the big negatives with this memory based approach is that often a relationship can't be found when a simple heuristic would have revealed it. Another big area of concern is what to do if the data in the memory is incorrect. How can it be fixed. It builds a generalization-based long term m emory, aka a knowledge base. It also looks through memory for previous cases of X being related to Y in some way.
Memory ends up becoming a set of generalization hierarchies.
When m ore than one relevant example exists in memory, usually the more general is used. There is also the question of objects meaning different things within different domains.