Yeah the image size makes sense looking at it like that.Had a quick look.
PNG is a compressed image format, basically almost the same (even similar algorithms) as if you put a BMP file into a ZIP. BIN picture files are uncompressed and therefore much larger - file size is width * heigth * 4 channels (RGB and Alpha). We can't possibly include a PNG decoder in Decrypt9, so uncompressed is our only choice. That's where the big files come from.
What you do with the considerably large splash image files (at least in relation to the maximum payload size of 1MB) is load them from the file directly to the frame buffer. There's no other memory affected the way you do it. If you include the files directly into memory, they have to reside somewhere, and 6MB (total size of all UI graphics) is too big (note: max payload size is 1MB and all the data inside the binary has to fit in there as well). So, that's that. Where the limit of only 10 menu entries comes from, no idea yet. I think it has to do with memory running out or stuff overlapping in memory, though. We need to find a way to prevent these problems.
The menu issue isn't much of a problem unless more options are added (i can't think of any to add at this point), if they're related to other options (like with the nand xorpads) i can just do the sub selection thing I've already done which works fine i guess.
It won't work when CN is launched from gateway mode due to higher firmware packed in the launcher.dat file.Installed ninja eur cia sysnand on my n3ds 9.0fw and boot gateway in gwmode on sysnand. Scanned ninjahax 1.1b and installed exploit on cia. Downloaded latest decrypt and tried both versions but when launched it goes black and goes back to homebrew menu. Any ideas just want to get nand fat16
So until we have another way to launch it on n3ds that doesn't depend on CN and you don't have a copy of CN you're out of luck atm.