200 hundered is were it stops. I made a sugar farm tower that was 7 levels high with 78 plants on each. Later I added a piston sytem to turn the water on and off to try and get 1638 sugars that should have fallen but the most I could get was 200. Which was far less than what it took to plant it.
LoL sadly yes, 200 items is the limit. It would cause more lag to increase that number, and since most people don't have top notch gaming consoles and whatnot, it would be bad to increase lag.
Will the next update increase that number?
I'm sure the limit is there for a reason and probably won't ever increase unless people want more lag.