As Raw mentioned above, the limit has been larger before but was shrunk for a reason.
It's gone from 300 where we had to cope with more crashes than there are right now, and then eventually 160.
Here is Raz's forum thread (http://www.feral-heart.com/index.php?option=com_jfusion&Itemid=2&jfile=index.php&topic=27243.0) if anyone wants to read about the server and Fluorite having this limit.