The .wad limit is enforced by a packet containing the names of all added .wads overrunning. Hilariously enough, you will get more .wads for your buck with files named a.wad, b.wad, etc... This limit would not be fun to raise. I therefore advise you to suggest to .wad creators to aim for shorter filenames, even if they are not memily so.
One thing we HAVE done is that in 2.2, the .wads that do not modify the game will not be sent in that packet. As a result, if you play with music/palette .wads, you will be able to get more in. The consequence is that it will not be added for the player on the other end, which may be a net negative if it's something like the music pack for SRB2 the past.
Hopefully this is an enlightening look into the game's interiors.