Sorry about super big font, I was trying to make it easier to read in the quote and erred on the too big side.
What you are essentially saying is that the limit for initiate grade is your initiate grade plus some small modifier. In philosophy, or rather in constructing a logical argument (which is used in philosophy or debate) this would be called a circular argument (circular initiation, in this case). This makes no sense, and ensures that longer lived folks, like the Immortal elves, can, with one spell, blow up cities, as they have millenia to apply to their initiation. Sure, the downcycle severely constrained their studies, but they can effectively kill any being on the planet by thinking about it (ritual magic use), slap a great dragon silly, and never, ever be worried about the coming of the Horrors, because they can just cast a single "Kill all Horrors" spell with an AOE of the planet.
This does not make sense. Even allowing that PC's will never get that kind of time, or karma, to build up to those levels, internal consistency breaks down if the hard limit is not used. Also, all the absolutely absurd ideas floating about regarding things like Possesion mages become far more plausible.
Hell, you want to see disgusting? A Nosferatu infected Possesion mage gorged on stolen Essence can, without raising magic above 6 with initiation, have an 18 magic rating, summon a force 36 spirit and channel it to grant him +36 to his physical attributes, sustain a reaction boosting spell, and then walk around with 72 hardened armor and 18 points of regeneration a turn. This is extreme and crazy and what you are saying that it can effectively be even higher through infinite initiation?