It's limited to 50m because it doesn't yet reflect the terrain quality setting, which would allow it to be higher (or lower) based on your TQ setting. For TQ=720p the limit s roughly 50m, for higher TQ it will be proportionally higher (1080p -> 75m).
But I guess you are asking why is the limit there at all. It's because of the architecture and optimization decisions. The limit is there because the grass generator is tied to a particular level of detail of terrain. Terrain is generated/rendered in quad-tree tiles, with each successive level quarter of its parent, with twice the resolution. Grass is tied to a tile with resolution of 30cm, meaning that every 30cm there's a point determining the height and presence of the grass tuft.
If I wanted to generate grass beyond 75m, it would have to be tied to the next level that covers a wider area but has a coarser resolution. It would be possible to extend the current system by this, to have areas from 75 to 150m covered by this coarser grass level, and it can go even further this way (up until the grass is 1px high). The reason why it wasn't done so is that with the current level of hardware it's not practical to spend time on features that won't be normally used, and it's better to use the time elsewhere instead. But it can be done, and for some things (visualizations, movies) it would make sense even now. However, there are other areas lacking, so I saw no point in pushing one feature to the max while others aren't up to the task yet (like the trees). In the future it can and will be extended.