I disagree. I don’t think they are separate at all. They are two approaches to the same or at least a very similar problem. Needing more space to express something in code can be solved both by moving some code to a different script and by making the script longer. In terms of readability, most programmers agree that functions should be concise, which could be seen as an argument for keeping a limitation on script length and instead solving the issue with more scripts that can act as functions to be called for a specific purpose.
This is another thing I disagree on. There are good reasons for limiting the length of a script (which is why there even is a limit to begin with - this was not an arbitrary choice). Limitations are a useful thing and imply a certain type of use. It is of course possible that this limitation should be taken away now that the ecosystem has evolved, but I don’t think it is as simple as you make it out to be. I think this should be well-considered.
Personally, I’d prefer to leave the script length as is. I currently have six devices (er-301, 2x txo, 1x txi, just friends, w/) connected to my teletype and rarely find myself in a situation where I have trouble fitting all the code I need into scripts. I could see use for some additional scripts, but I think adding extra lines to scripts would negatively impact the navigation in scripts. Of course, I wouldn’t mind a somehow configurable option (although I don’t think something like this exists, yet?).