as i understand it, the code space limit is a widespread misconception left over from the days of os1, when the os resided in a different compartment of the memory.
on the other hand, processor limit is NOT a misconception. however, the two have different impacts. as far as code space goes, there's something like 5 mb of space for the os, which is barely 1 mb.
stuff isn't "removed" so much as it is undermined by foundation changes in the os. this is the big thing that the end user does not understand. this is why compatibility changes AND why some features change/disappear. it's a sad truth of this small level, specific device development that is not easy to understand for someone who has a very outside look at the OS development.
as far as the concerns, they are very very similar to the concerns expressed last year when os2 dropped, as that took out some features from os1 (velocity to attack, sample start, etc). a year earlier, when os1 dropped, there were complaints and concerns then too. half a year earlier than THAT, in 2006, when jj first appeared, there were concerns THEN, TOO. it's to be expected. people get excited. however, we've yet to see an os crash and burn. currently, the free jjos, os1, and os2 are all extremely viable os's that are even used by some big names.
the decision lies with the user. for me, os2xl's feature set > os2's feature set, all features considered. this is not the case for others. however, i'd ONLY consider using either os2 or os2xl. luckily, os2xl is only 15 dollars if you have os2, so it's a very small step up.
regardless, it's nothing to get stressed out about. this is a fun time. myself and other testers are working hard to ensure that bugs are reported and fixed so that 2xl will quickly become as smooth and clean as os2.