The Windows BACKGROUND mode is useful for stuff like virus scanning or database log compaction, where you want to make some progress, but only if you can be certain not to hurt any foreground workloads. Back when we had hard drives, this wasn't actually trivial to achieve, because it is very easy to interfere with the foreground workload just by doing a few disk seeks every now and then.
I agree the 32MiB working setlimit is somewhat arbitrary and should be documented, but Windows is full of these arbitrary constants, like the 32kiB paging chunk for instance.
My recommendation for Chrome would be to stick with the background mode, and fix whatever problem is causing the working set to exceed 32MiB.