While this has some theoretical merit, IME, limits are quite useful to catch bugs (or prevent degenerate cases). For example I was recently working on a permissions system wherein there can be members of groups. I set a reasonable limit on the size of a group based on a maximum of actual usage and what I could foresee being reasonable. A few days later, this limit was triggered, and I got a bug report. But it turned…
Code is generally designed to operate within certain "reasonable" performance boundaries, and when it goes outside those you need to think whether code should be rewritten to accomodate it.
Just a tiny example, but I regularly deal with long (800+ page) PDF's on my iPad, reading parts of them in the stock Books app. When I select text to highlight, the context menu unfortunately puts "select all" directly next to "highlight". Of course, every so often I accidentally hit "select all", and then I have to force-close the app because otherwise it just freezes for 10 minutes as it extracts and selects the text on every single page.
When really, it needs a limit to detect that, hey, if the PDF is over 20 pages long then just don't allow "select all" anymore, because this isn't the right tool for the job.