It seems the 256 limit was done away with before 2.6.26 and for some reason added back in before 2.6.29.1, discreetly noted somewhere in change-log land but not in the loop.c file itself. Perhaps there are other kernel functions that were affected by having more than 256 mounted loops.
With 655 tcz extensions in the repo, and the fact that I never copy to ram since I don't have a lot of it, I actually hit the 256 limit with normal use of TC as a desktop distro when I installed the things I would normally install (along with their dev extensions) when they are available. So personally I thought it worthwhile to see if loops past 256 could be mounted, using the instructions given on the Slax page if losetup did not otherwise cooperate.
The 256 limit has evidently been reinstated in the kernel and not an issue of boot parameters, mounting procedure, device node issues, or other things in our control. But sure, it is a limit that can be lived within and the kernel is usually good about raising the ceiling on max filesystem size, max RAM support, and things such as max loops before there is actually much of a real world need for it. So chances are the next kernel update or two may well see this limit gone again.