Doubtful. This decision is what allowed Android to perform reasonably even in the early days circa 2008. Without such a restriction, it's possible that Android couldn't have competed with iOS on performance and die as a consequence.
It's easy to make fun of technical decisions made ten years ago, try to put things in perspective.
Besides, even today, this 65k limit is barely a minor annoyance that only a very tiny percentage of Android apps ever hit (and there are easy workarounds).