Those are excellent points Mantis.
Continuing on at this point for the sake of argument, not because I have not been convinced or am trying to convince others.
Yes, as a GM I would impose those limits, and as a player I would accept them. Those are reasonable restrictions, decreased ammo capacity and additional recoil.
As for the ad infimum up-scaling, we already have that. SMGs are pretty much just big machine pistols(with the advantage of more accessories/mods); Assault Rifles are pretty much just bigger SMGs(with even more accessories and mods), or rather carbines are just smaller assault riffles that fit into the SMG class; and Battle Rifles are just scaled up Assault Rifles. Not everybody is going to mod their weapon in such a way, for the same reason not everybody carries APDS ammo or mods their heavy pistol for Burst Fire; some can't be bothered, some don't care, some don't think it's worth the hassle or expense. But some of us do, and we like to have the option. Now, I've already done some pretty serious mods in my current campaign, and am not looking to actually do this. If was, and my GM told me 'no', I would accept that and move on without complaint.