That is, indeed, a technical limitation of MMS.
No, it's not. It's an implementation detail. MMS is basically just SMTP on the back end. There's no technical reason you couldn't allow much larger attachments aside from cost and shitty implementations.The last time folks got worked into a frenzy over RCS I ended up looking at the MMS specs. If memory serves 3GPP recommended an upper bound of at least 5 megabytes. American carriers typically limit attachments to like 3 megabytes or less and they mandate ancient video codecs.