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When will they abolish the arbitrary 50MB limit on PWAs?

The limit does seem arbitrary, but just as a sanity check doesn't 50MB seem like a absurd size for a web application...?

It depends on the application. Something like a video game or a proper web application like Google Maps would surely want more than 50MB.

No. It's an absurd size for a web page, but not for a web application. Many native applications are multiple GB.