I vaguely recall that being a huc limitation for scan-line regions.
EDIT: I'm guessing most of the limitations in that document are based on huc, but honestly I haven't looked at huc in long enough that I don't remember. The resolution can be far higher than what's listed, and I want to say it's programmable in increments of 8 pixels for horizontal resolution and 1 pixel increments for vertical.
Also, I think I mention this in about 50% of my posts, but there are 3 independent layers supported in hardware: sprite, tile and background color. I don't think background color gets near enough mention either. Magical Chase is perhaps the most well known, but Metamor Jupiter is another example. I'm not smart enough to verify it, but I suspect the rainbows early in Star Parodier and the far layer at the end of Soldier Blade are other examples.