My concern is the following: I am storing a relativity large dataset in a classical python list and in order to process the data I must iterate over the li
Without knowing the specifics of what you're doing with this list, it's hard to know exactly what would be best in this case. If your processing stage depends on the current index of the list element, this won't work, but if not, it appears you've left off the most Pythonic (and in many ways, easiest) approach: generators.
If all you're doing is iterating over each element, processing it in some way, then either including that element in the list or not, use a generator. Then you never need to store the entire iterable in memory.
def process_and_generate_data(source_iterable):
for item in source_iterable:
dosomestuff(item)
if not somecondition(item):
yield item
You would need to have a processing loop that dealt with persisting the processed iterable (writing it back to a file, or whatever), or if you have multiple processing stages you'd prefer to separate into different generators you could have your processing loop pass one generator to the next.