AFAIK this is not an issue as the signal level on some channels is not perfect so I suppose that's why there are the Continuity errors. They don't increase much in general... It was an issue in past, I was struggling with a driver configuration (Astrometa DVB-T/T2 tuner) but now it works quite good.
I believe anybody else (who is also using a Live TV & Tvheadend) should be able to reproduce the described Timeshift / Tvheadend issue.
I don't know what exactly happens when the RAM only parameter is used but on filesystem it's immediately visible if the Timeshift / Maximum size limit is currently working or not.
I am using tmpfs for the Timethift buffer this way and it's pretty usable:
mkdir /tmp/ramdisk
chmod 777 /tmp/ramdisk
mount -t tmpfs -o size=800m myramdisk /tmp/ramdisk
I could accept that Timeshift stops (stops writing buffer data) when the buffer is about to overflow... But Kodi does not handle that situation (which happens) correctly (the question is what should be done in this case but I am sure the Timeshift pointer should not jump to nonsense / left border).