IIRC, MLCAD can't properly scan for parts when any parts have a title that is longer than 64 characters. Additionally, it can't handle titles that are too long in parts.lst. I think Tim Gould had a workaround for that, which was to somehow truncate the long names while generating parts.lst with his own replacement for mklist.
Assuming that the parts.lst that goes into official releases is generated with the truncated names, and assuming that the mklist replacement is generally available, I don't have any problems with removing the restriction.
Assuming that the parts.lst that goes into official releases is generated with the truncated names, and assuming that the mklist replacement is generally available, I don't have any problems with removing the restriction.