actually makes pretty good sense as a coping mechanism I guess. decreased memory function might help erase bad experiences, thereby decreasing stress - unless your job depends on abnormally high levels of recall... probably not a big issue in days gone by.
I used to have an incredible memory, and in general attributed my SHARP decline in recall to just getting a bit older (though I'm only 27 now...). Still, I did feel that this decline helped me a lot for the very reason you mention. I used to get panic attacks a lot -- not so much anymore. I've joked before that it's almost like I've forgotten my triggers, and that my short term memory is so bad that I don't get stuck in the panic feedback loop so easily anymore.
Hope you don't mind me asking - Are you on, or have you taken, SSRIs? I've been interested in them for a while, and one thing I've read fairly consistently is that they can cause short term (and in some cases long term) memory degradation.
No, I've never taken SSRIs. At one point I was taking xanax, but only when I had panic attacks. I hear that benzos like xanax have an affect on short term memory. I only took maybe 30-40 pills over two years. Hopefully such a seemingly cautious dose wasn't enough to mess me up!