The limit is actually 160 items or two sets of 80 at once. It's a memory limit on the PS2 which only has 32MB of system memory. To allow bigger active inventory's they would have to remove something else from active memory. This is also why the auto-translate system hasn't been updated with all the new terms.
Honestly it's one of those things that piss's me off. A 10+ year old platform is holding the entire game back.

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