Consider that in Linux a path is defined to be a maximum length of PATH_MAX, that is defined to 4096 bytes, and a filename (and directory name) shouldn't be longer than FILE_MAX that is 255 bytes. This limits are defined in the headers and I use them always in writing my C programs (if it crashes... you are doing something really wrong!).
So how the hell do you have a directory that is more than 8Mb? You shouldn't! The filesystem doesn't support it. It's a matter of the filesystem driver that should reject a path that long in my opinion.
Systemd should be fast. It's at the base of the operating system. Also it should consume little memory. You can say, who cares about allocating dynamically a string, or allocating a static buffer of 16Mb, yes we should care, I use Linux computer with 16Mb of RAM, total. Of course they don't run systemd nowadays since it's too big, but in my opinion systemd is good, and I would like to see it more in the embedded world.