Yes and no that is the format limits, not engine, per say. However the way I got around is tricky, but you can make use of NURBS surfaces.Besides you don't need really need to go higher than that unless you import a complete level, but that is not only impractical, but no one does that, as pretty much most engines support creating primitives with in the engine.
Ambient occlusion mapping is going to throw a fit when has to render that, most likely end up crashing, even thought a section of what I am creating weighs in at 35 000K polygons I still have to employ polygon reduction and slice it to a more manageable 150 x 150 units, which equals to a more respectable 10k polygons.
Also pretty sure the ambient occlusion lee is working doesn't have per pixel light mapping, in other words it doesn't smooth objects, is such a case less is better. Ambient occlusion only calculates the inner most angles of a model, which why lee has to batch render models, as the static as in effect he is trying to render the static object as a single model and not individual objects, that is my understanding at least.