1. It takes so long to create that many files in the first place. In this case 26 hours of doing nothing but file creation.
2. If the files contained any data at all, you would need a lot of disk space. If each file was 64k, you'd need 640TB of disk. It seems more likely you'd run out of disk space before you reached a billion files.
3. Someone developing such a system where that many files could be created would probably realize that it's a poor design and figure out a way to mitigate it before it ever happened.
Nevertheless, it's fun to think about.