Is your CP-wallet's transactions per block limited to the number of UTXO's in that address?

It seems that with the ‘unconfirmed’ option ‘off’ (not allowing unconfirmed TX’s) that you can only send as many transactions in a block as you have UTXOs in that address.

Does anyone know if this isn’t true? And if it is true, why can’t Counterparty write as many Transactions per block as the user wants? By referencing a small amount of input from the UTXO instead of the entire amount. Is there a technical reason, or just a shortcut being taken right now in the reference client?

Confirmed - see the github issue here for further discussion: