I only partially agree with this, this would be a great thing but would come with a heavy cost on performance.

The Quest 2 only has so much to work with, and VRChat is a heavily unoptimized game. The Snapdragon XR 2 inside it is heavily underclocked, and the Quest 2 only has 6 GB of RAM (or Memory). While the developers have been working to improve optimization over time, it certainly is not in the best condition at this moment. Most recent crashes that I've noticed have produced the error "There is not enough memory to run VRChat." Raising this limit, or even removing it, would not be beneficial at this moment and would need some extreme fine tuning.

However, I do see a potential to raise this with the upcoming Quest 3. The SDK could possibly provide a separate option for Quest 2 and Quest 3, and they might be able to push the limit to 15-25 MB for the Quest 3 while keeping Quest 2 the same until it runs the game smoothly enough to be able to handle such things. The expense of this would be that more storage would be taken up on their servers than needed and would increase cost of maintenance.

(I hope my grammar was readable, sorry if it is not.)

The 10Mb limit was made for the original Quest, now that we have Quest 2 and Quest 3 the limit really needs to be increased.

This limit is always the one that prevents porting an avatar from PC to Quest, other issues can be worked around, but not this one.

Especially now that the SDK requires setting ASTC compression as the default to allow uploading, which drastically increases the file size, everyone has to manually override it back to Crunched to get below the limit, if you even can.