Well, I don't think MS are likely to fix this limitation any time soon.
But perhaps it's really a question of how the limitation impacts you.
Frankly, the recipients dialog box is not a very good place to
select/deselect/filter or modify large volumes of data. If you need to do
that, you are likely to be much better off doing it outside Word, probably
in the same place the data comes from. For example, if you are using a large
Excel sheet as a data source, you'll probably be better off seelcting your
data in there and creating the data source you need, then doing the merge.
If you are using Word to report on large numbers of records, you might be
better off using e.g. Access reporting, or perhaps even something like SQL
Server Reporting Services (I'm thinking of things inside the "Microsoft
world" at the moment but of course there are other possibilities). At a
certain point it isn't even a question of whether or not Word is technically
capable of doing the thing you want to to - it's whether or not it also
provides tools to help you manage the process, especially when things go
wrong - e.g. when your printout stops after you processed 13500 records - or
was it 13501?
Personally I would prefer it if Word did this stuff better but if it doesn't
do what you need, you really have to consider looking elsewhere.