Seriously why does Android studio lag so badly.I mean it's beefed up version of a text editor( I love studio for it's innumerous IDE features).It eats away my RAM and you might have guessed it right,I do have 4 GB RAM. The application takes memory that is sometimes more than that of games.

It was contracted to Jetbrains but am not sure how it works business wise as it's not an official offering.

This is mainly due to two reasons:
1. Gradle building is very resource intensive, and as android studio uses it quite a lot, it eats up your ram and processor.
2. As you said, the IDE in itself is a beast, and handles almost all stages of development, which is very difficult to achieve. They will eventually think of optimising the entire process, but till then, pray 😌😂