The RAMDAC controls color output at various frequencies. For 8-bit video, you only need a single-channel 8-bit DAC (e.g. BT or AD478). For 24-bit (millions), you need a triple channel 8-bit DAC (e.g. BT or AD473) -- or 3 single-channel 8-bit ones. Also, the BT47x variants were faster and the Bt45x variants were slower -- like the Bt453.
VRAM limits maximum screen resolution at any given bit depth. For example, it takes 3Mb of VRAM to do 1024x768 @ 32bpp (typical 19" resolution). On the Mac, QuickDraw has sloppy boundaries and may access memory either slightly before a board's base address or slightly beyond the bottom right screen coordinate in memory. For maximum robustness, there should be buffers at both ends of screen memory to prevent bus errors (but these issues are corner cases).
Example VRAM size calculations look like this:
1024*768 * 32bits = 25,165,824 bits
25,165,824 / 8 bits per byte = 3,145,728 bytes
3,145,728 / 1024 bytes per kilobyte = 3,072 Kb
3,072 / 1024 Kb per megabyte = 3Mb
Similarly, the VRAM size requirement for 8-bit boards at 1024x768 is 768Kb.
So, including the extra CopyBits buffers, VRAM for video boards should be slightly bigger than the above sizes.