Hi, So I did get a chance to add swap to my system and guess what it made a significant difference. I had two instances of iceweasel, one instance of gedit, 3 gnome-terminal window open and the system is still running pretty decently. I know there is always the debate between how much Swap is sufficient - for my purpose, first I added 256 MB of swap file on the installation partition and then I reduced to 128 MB of swap and the system was still responsive. I don't know how far low I can go but for now it looks it will do the trick. I am so relieved that swap solution worked out pretty fine. I did not want to move to another distro because I like Debian a lot!
I wonder if there is a way by which the swap dynamically grows in size as an when required? Thanks for everybody's input!