The limit is likely due to memory usage. I'm not entirely sure how much memory it takes up, but I am fairly certain that if you do it for everyone, it will multiply to a high amount VERY quickly.

On a side note, I feel your pain. My inventory is almost never less than 75% full because of random crafting mats I haven't gotten around to using. I can't even remember the last time it was less than 50% full.