The practical limitation isn't just magnitude, but resolving power. Atmospheric disturbance makes it difficult to resolve anything smaller than a meter from orbit, and the diffraction limit means the further are away from the thing you want to observe, the wider your telescope needs to be. Since the distortion effects near a black hole are near-asymptotic, the features we want to see have very small subtended angles, and we need much higher resolving power to "see" recognizable features.

Stars? Definitely feasible. Planets? Much harder. People? Certainly not with available optics.