"This doesn't make sense to me. You've got 32 GB, why not use it?
Artificially limiting the memory use to 20 GB seems like a waste of
good money."

I'm having a hard time convincing the dbas to increase the size of the SGA to 
20GB because their philosophy is, no matter what eventually you'll have to hit 
disk to pick up data thats not stored in cache (arc or l2arc).  The typical 
database server in our environment holds over 3TB of data.

If the performance does not improve then we'll possibly have to change the raid 
layout from raidz to a raid10.
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