this post was submitted on 05 Aug 2023
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Pretty sure it's because of performance issues. 250 or so players loading chunks with a render distance of 10 chunks causes a shit ton of lag, even on their older, more optimized version of 1.12.2. They want to update to 1.19, but performance is the main reason they haven't updated the game yet.
That makes sense. And the Java editions have never been the most efficient thing in the world to begin with.
There's been some promising advancements in the server space such as Multipaper and Folia to remove Minecraft's single-core limitation, hence allowing for much higher player caps. I was on a Multipaper server running smoothly with ~300 players a few months ago.