more dangerous than the file limit is wasted space due to allocation units. each 1 byte file takes up, by default, 4kB of space. on a small SD card i think you can format it to use smaller segments, but for 2GB+ i think 4kB is required. this means that if you have a hundred 1kB icons (a reasonable size for a full-color 32x32 png) youre wasting 300kB of space.
