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Would you be able to enlighten me why QTP OR is *that* bad (from your post, it seems very bad). Are you using DP then?
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The QTP OR is like many of the features in QTP such as...
Data Tables and Checkpoints
As you gain experiance in the use of QTP you find better ways to do things. I still use the OR because of the crapy coding done by the developers here but where I can I use DP mainly to deal with the 100's of links in the App.
Try putting your OR's in a database. Then you can call them out when you load the reusable action/function of the test. Another method is to export your OR per action and store them in a library and then load them one at a time when you need them.
I do not think there is a limitation for OR, but if more objects keep on adding at some point of time your OR will hang.
I be live OR is much matured than earlier, in my application the developers keep on adding /changing the objects and the OR best suites me.