The issue is that the current client and server use a single byte for the player ID. So exactly it could do 255, minus the four connections reserved for the server monitor (which reboots it when it's crashed) But as it stands the server takes any connection and gives it a number, so people in the chat client can reduce that number when they're trying to see if the server's up, things of that sort. So the functional number is lower.
To do more would require the new client to be done. It'd be a significant number of changes on the server, too, since it's an enormous mess of spaghetti code Anyway I hope that helps
As far as mechapumpkins, etc. they do look cheap, yeah.. But there are only a few in the game and originally I had thought I'd just use them as an event monster. The download is pretty big as is, mostly because of armor (20MB a pop, compresses to about 5, and that's per gender)... Were the game 3D none of this would be a problem.. ah well I'm starting to go off topic. We could do that though, the blue dragon for reference is artdir/0.pc2/67.pc2, to give you an idea how much space a monster of that size takes. It's some, but nothing compared to armor, but it does all add up. Well it's not something for right now if anything