I think instead we may want to add a finalize() or close() method on frame objects which would clear all local variables (as well as dereference the globals dict, perhaps), after having optionally run a generator's close() method (if the frame belongs to a generator).

If I'm not mistaken, it should allow breaking reference cycles, and remove the need for complex traceback processing, which Twisted currently also does: http://twistedmatrix.com/trac/browser/trunk/twisted/python/failure.py#L89

Note that generator cleanup through the frame has a patch in issue17807.