I'd always assumed there would be someway to load this to RAM and not have to deal with a size limitation.
Is it an issue of how much space a Kickstart ROM can be mapped to or other problem?
If you put something in the ROM socket, there is no direct way around the space limitation if you want everything in ROM/flash, as the limit is because of the number of address lines available on the various models.
But of course you could put extra ROM/flash/RAM on the Zorro bus etc.
Or you can put some stuff in ROM/flash and a second stage boot loader that'll let you load a larger image from RAM, similar to what is done on the A1000.
So yes, there are ways around it, but the reason for trying to get as much as possible into a 512K or 1M image would be for compatibility with as wide range of classics as possible when booting floppies etc. where there's no convenient way to load another ROM image first (it'd be pretty sucky to put in a replacement ROM/flash on an A500 and have to boot a second stage image from floppy before you can boot a disk that depends on C:loadwb bringing up a Workbench, for example...).
For booting from a harddisk etc. this is pretty much a non-issue, since you pretty much only need enough in the kickstart to recognize the boot device and be able to load files from it.